OpenText closes Micro Focus deal, to cut 8% of workforce

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Waterloo, Canada: Information management solutions provider OpenText said it has closed the previously announced $5.8 billion acquisition of Micro Focus this week. But OpenText has decided to lay off 8% of the combined workforce of around 26,155 employees globally.

“I would like to welcome Micro Focus customers, partners and employees to OpenText,” OpenText CEO and CTO Mark J. Barrenechea said in a statement.

“Digital life is life, and with Micro Focus’ great products and talent, we will help organisations of all sizes accelerate their digital transformation,” added Barrenechea.

“With this acquisition, OpenText’s corporate mission expands to help enterprise professionals secure their operations, gain more insight into their information, and better manage an increasingly hybrid and complex digital fabric with a new generation of tools,” commented Barrnechea.

Cybersecurity, Digital Operations Management, Applications Modernization and Delivery, and AI and Analytics are among the new generation of tools.

According to Barrnechea, this new generation of Information Management software will help organisations accelerate their digital transformation and drive growth while reducing costs.

OpenText said the $5.8 billion acquisition of Micro Focus announced in August last year is inclusive of its cash and debt along with other key financial parameters such as revenue, EBITA and cost synergies of $400 million.

Following the acquisition, OpenText said it will make an approximate 8% workforce reduction from the combined workforce. However, it hasn’t disclosed the exact number of employees.

“We have a structured and disciplined approach to M&A. The last six months of planning has led us to a defined integration plan to deliver on our committed outcomes. We are ready and excited about winning the Information Management market, strong customer outcomes, and company growth and expanded cash flows,” concluded Barrenechea.

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