Open Text Corporation, a global leader in secure information management for AI, announced that it has reached a definitive agreement to divest an on-premise solution (eDOCS), a part of its Analytics portfolio, to NetDocuments, for US$163 million in cash.
The business to be divested is part of OpenText's Analytics product group, primarily focused on automating the work of legal professionals, and contributed approximately $30 million in annual revenue in OpenText's fiscal year ended June 30, 2025. OpenText intends to use the proceeds of the sale to reduce its outstanding debt.
"This divestiture further enables our continued focus on growing our core business centered on secure information management for AI. We will continue to enhance shareholder value by exploring portfolio-shaping opportunities that rationalize non-core assets from our product portfolio," said Tom Jenkins, OpenText Executive Chairman of the Board and Chief Strategy Officer. "This transaction supports our capital allocation framework while strengthening our focus on businesses that will drive our future revenue growth."
"Let me thank our teams, our customers, and our partners for their ongoing support. NetDocuments will be a great partner for the users of the eDOCS solution, and we intend to work closely with them to ensure a seamless transition," said James McGourlay, OpenText Interim Chief Executive Officer.
Under the terms of the agreement, the software, customer contracts, associated services, and employees will be integrated into NetDocuments. The transaction is expected to close by early 2026, subject to customary approvals and closing conditions.
Goldman Sachs & Co. LLC is serving as financial advisor to OpenText.
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