NEW YORK -- The software company OpenText will spend approximately $1.17 billion to acquire cloud-technology provider GXS Group in a cash-and-stock deal.
OpenText, based in Waterloo, Ontario, will pay about $1.07 billion in cash and $100 million of its stock. When the deal closes, part of the cash portion of the purchase price will be used to repay some GXS debt, company officials said Tuesday.
GXS stockholders are expected to own about 2.1 per cent to 2.4 per cent of OpenText's stock once the acquisition is complete.
The companies will have about 80,000 customers combined once the transaction closes.
GXS Group Inc., a business-to-business service provider, will become a subsidiary of OpenText Corp.
Open Text anticipates the transaction adding to its adjusted earnings in fiscal 2014, and plans to finance the cash part of the acquisition with available cash and proceeds from a new credit facility. OpenText has committed bank financing of up to $800 million from Barclays and RBC Capital.
The deal is expected to close within 90 days, during OpenText's fiscal third quarter.
