Open Text To Buy Dell EMC's ECD Business For $1.6 Billion

Open Text Corp. said Monday that it will buy Dell EMC's enterprise content division for $1.62 billion. Open Text said it expects the deal, which should close within 90 to 120 days, to immediately add to earnings. The company said it plans to negotiate and enter into a commercial partnership with Dell EMC to expand customer offerings. "This acquisition further strengthens OpenText as a leader in enterprise information management, enabling customers to capture their digital future and transform into information-based businesses," said Chief Executive Mark Barrenechea. The stock, which was still inactive in premarket trade, has surged 25% year to date, while the S&P 500 has tacked on 4.1%.