OpenText to acquire California-based security software company for US$222M
by Canadian Manufacturing.com Staff
The deal will enhance OpenText's Discovery portfolio of software and services and broaden the company's information security offerings
WATERLOO, Ont.—OpenText, a global enterprise information management (EIM) company, has agreed to acquire Guidance Software, a developer of forensic security software based in Pasadena, Calif.
Waterloo, Ont.’s OpenText said inn a press release that the acquisition is expected to complement the OpenText Discovery portfolio of software and services that provide search, extraction, classification, review and analysis of information, and to broaden OpenText Information Security capabilities through the addition of digital investigation, forensic security, and endpoint solutions.
OpenText says under the terms of the agreement, a newly formed, wholly-owned subsidiary of OpenText will commence a tender offer for all outstanding shares of Guidance Software for $7.10 per share in cash, for a total equity value of approximately US$240 million, less Guidance Software’s cash, for an enterprise value of approximately $222 million.
OpenText will fund the transaction with cash on hand plus existing short term debt facilities
The deal, which still faces regulatory approvals and customary closing conditions, is expected to close in the third quarter of 2017.