Subscribe Now

* You will receive the latest news and updates on the Canadian IT marketplace.

Trending News

Blog Post

OpenText enters acquisition deal with GXS

OpenText enters acquisition deal with GXS 

The price of the purchase is $1.165 billion, 2.4 times the amount of GXS’s revenues from the 2012 fiscal year. With the acquisition, OpenText and GXS are poised to reach 80,000 customers and support a projected 16 billion transactions in the cloud. The trading grid shared by the two companies will carry more than 550,000 connected businesses, with 40 data centres and access points located around the world.

The acquisition will combine OpenText’s Information Exchange portfolio of services with GXS’s B2B integration and managed services. According to Gary Weiss, senior VP of the portfolio group at OpenText, the customer base of each company will see benefits from the merger.

“The customer base for GXS will now have the ability to add things such as secure email, secure file transfer, notifications, fax, and capture technology to what they’re doing already,” Weiss said. “And the OpenText customer base will now have access to a very mature, proven managed services group that can come in and outsource a customer supply chain for them. So there’s quite a bit of synergy for both customer bases.”

The acquisition means that OpenText will be able to accelerate plans it had previously laid out to expand the company into the B2B managed services market.

“We are so excited about [this acquisition],” said Weiss. “The power of an information exchange trading grid on the scale that GXS and OpenText currently have, just by simply aggregating them together, is really, really powerful. This is a very meaningful transaction, and we think we’ll have great benefits in the marketplace for years to come as the trading grid becomes the e-commerce engine of business around the world.”

Related posts