Open Text buying Actuate for about $330M; deal targeted to close in 2015's 1st quarter

Software provider Actuate has agreed to be purchased by Open Text for approximately $330 million to help enhance its product offerings.

Actuate Corp. shareholders will receive $6.60 per share, an 89 percent premium to the San Mateo, California, company's Thursday closing stock price of $3.50.

Actuate's stock jumped $3.06, or 87.4 percent to $6.56 in Friday morning trading.

Canada's Open Text Corp. said that it will fund the deal with cash on hand. It plans to start a tender offer for Actuate's stock within seven business days. The tender offer is subject to the tender of a majority of Actuate's shares and certain other customary closing conditions.

Both companies' boards approved the transaction, which is expected to close in Actuate's first quarter of 2015.