OpenText is making a bold move to sharpen its business focus. The company has just announced plans to sell a significant part of its analytics portfolio. This decision marks another step in its strategy to concentrate on core strengths and accelerate growth in secure information management for AI.
OpenText Sells eDOCS Business Unit to NetDocuments for $163M
OpenText has entered a definitive agreement to divest its on-premise solution, eDOCS, to NetDocuments for $163 million in cash. The eDOCS unit, known for automating tasks for legal professionals, generated about $30 million in annual revenue in the last fiscal year. This transaction is expected to close by early 2026, pending customary approvals and closing conditions. OpenText plans to use the proceeds from the sale to reduce its outstanding debt, aiming to reinforce its financial position.
Divestiture Sharpens OpenText’s Focus on Core AI Offerings
This move aligns with OpenText’s strategy of shedding non-core assets. According to company leaders, the divestiture enables OpenText to focus on core businesses centered on secure information management for AI. The company’s chairman emphasized that the deal strengthens their ability to enhance shareholder value and drive future revenue growth. By refining their portfolio, OpenText hopes to boost innovation and operational efficiency in priority areas.
Transition Plan and Future Strategy Following the Transaction
All eDOCS software, customer contracts, services, and staff will transition to NetDocuments as part of the agreement. OpenText pledged to work closely with the acquiring company to ensure a smooth handover for customers and employees. Leadership thanked teams, partners, and clients for their support, expressing confidence that NetDocuments will be a beneficial new home for eDOCS users. OpenText will continue to seek out portfolio-shaping opportunities to strengthen its position in AI-driven information management.
In summary, OpenText’s divestiture of eDOCS to NetDocuments aligns with its ambition to specialize in secure, AI-enabled information management. This transaction will help reduce debt, refocus their business, and pave the way for ongoing innovation. Stakeholders can expect further strategic decisions from OpenText as it pursues its future growth trajectory.
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