Open Text Reaches Definitive Agreement To Divest Its AMC Business To Rocket Software For $2.275B In Cash
Portfolio Pulse from Benzinga Newsdesk
Open Text Corporation has entered into a definitive agreement to sell its AMC business to Rocket Software for $2.275 billion in cash. The AMC business specializes in mainframe modernization and connectivity software, serving over 10,000 customers with applications crucial for hybrid cloud environments.
November 28, 2023 | 9:19 pm
News sentiment analysis
Sort by:
Ascending
POSITIVE IMPACT
Open Text Corporation's divestiture of its AMC business for $2.275 billion in cash could provide significant liquidity and may lead to strategic reallocation of resources.
The sale of the AMC business is likely to have a positive short term impact on Open Text Corporation's stock price. The influx of $2.275 billion in cash could be seen as a positive liquidity event and may allow the company to focus on its core operations or reinvest in other growth areas. Investors typically view divestitures that streamline operations and provide financial flexibility positively, which could lead to a short-term increase in stock price.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100