The conglomerate based in Waterloo, Ont., said selling its application modernization and connectivity (“AMC”) business to U.S.-based Rocket Software (itself owned by investment firm Bain Capital) will help pay down debt and let it focus on cloud services and artificial intelligence. (The Logic)
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The conglomerate based in Waterloo, Ont., said selling its application modernization and connectivity (“AMC”) business to U.S.-based Rocket Software (itself owned by investment firm Bain Capital) will help pay down debt and let it focus on cloud services and artificial intelligence. (The Logic)
Talking point: The unit OpenText is divesting serves customers still running mainframe computers and Cobol programs, with an eye to migrating to modern cloud computing without breaking anything (and brings in US$500 million a year). OpenText picked it up in a larger acquisition of the U.K.’s Micro Focus last year. Mainframe maintenance and modernization are Rocket Software’s whole business, and OpenText said the AMC unit’s roughly 750 workers will all be integrated into Rocket once the deal closes in mid-2024. Open Text said it’s planning to shift its growth strategy from acquisitions to innovation and new products, and the all-cash deal will free up capital.
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