About the Terms of the Acquisition (all figures approximate)
- Total purchase price of $6.0 billion, inclusive of Micro Focus’ cash and debt
- Total purchase price is 2.2x Micro Focus’ pro forma TTM revenues(1)
- Total purchase price is 6.3x Micro Focus’ pro forma TTM adjusted EBITDA(4)
- Expected cost synergies of $400 million, including Micro Focus’ previously announced cost savings program of $300 million (net of inflation), as well as $100 million in additional cost synergies
- Targeting to be on the OpenText operating model within 6 quarters of closing
- Expect meaningful expansion of cloud revenues, adjusted EBITDA and cash flows in Fiscal 2024
- All-cash consideration for the Acquisition to be funded by $4.6 billion in new debt, $1.3 billion in cash, and a $600 million draw on our existing revolving credit facility
- The Announcement can be found on our website at https://investors.opentext.com. This press release should be read in conjunction with, and is subject to, the full text of the Announcement.
- The Acquisition is expected to close in the first quarter of calendar 2023, subject to the satisfaction (or, where applicable, waiver) of the conditions set out in Appendix 1 to the Announcement.
