The Waterloo, Ont.-based company is acquiring Micro Focus at about 2.2 times its pro forma trailing 12-month revenue in an all-cash deal. “Upon completion of the acquisition, OpenText will be one of the world’s largest software and cloud businesses,” said CEO Mark Barrenechea in a statement. The company said it will fund the acquisition through existing cash and its revolving credit facility, as well as new debt. (The Logic)

Talking point: The deal—if regulators and Micro Focus shareholders approve it—will be OpenText’s largest acquisition by far, according to PitchBook. The cloud-service company booked a record US$3.49 billion in revenue in fiscal 2022, which ended June 30. In an interview with The Logic earlier this month, Barrenechea signalled he intended to do deals this year, citing the company’s strong balance sheet; bandwidth following the integration of November 2021 acquisition Zix; and falling valuations. While the firm is growing through acquisitions and hiring—it plans to grow its 14,000-plus workforce by about two per cent this year—it is also “belt-tightening” by putting off some facility expansions and raising expectations for employee performance.