Rocket Software, an American provider of hybrid cloud solutions for mission-critical applications, has entered into an agreement to acquire the Application Modernization and Connectivity (AMC) division the Canadian OpenText. This is reported in the Rocket Software press release.
The value of the transaction is $2.275 billion, which will be financed from available cash, debt obligations and a new issue of shares. Debt financing of the transaction will be provided by RBC Capital Markets, Barclays Capital, Deutsche Bank Securities, UBS Securities, Citigroup Global Markets, HSBC Securities, Mizuho Securities and SMBC Nikko Securities.
The deal is aimed at expanding the portfolio of upgrades Rocket Software, which will allow customers to run core applications on any platform locally or using a hybrid cloud strategy according to customer requirements.
The transaction is expected to be completed by June 30, 2024, subject to regulatory approval and compliance with the usual closing conditions.
RBC Capital Markets, LLC, Barclays Capital Inc, Deutsche Bank Securities Inc and UBS Securities LLC are acting as financial advisors, and Kirkland & Ellis LLP is legal counsel to Rocket Software.
AMC is one of the largest companies in the field of application modernization based on COBOL and Host Connectivity, which allow you to use core applications and provide flexibility during modernization, allowing you to run applications on any platform. AMC is part of the OpenText framework.
OpenText is a Canadian multi—user ECM platform for automated digital content management and creation of a single secure environment for users. The platform includes standard EDMS functionality and allows you to manage business processes in real time, including document flow.
Rocket Software is a private software development company based on IBM Z, IBM Power platforms and embedded databases. Rocket provides predictive data analytics, develops artificial intelligence and machine learning capabilities in the financial, banking, medical, aerospace and automotive sectors. The company entered into a business partnership with IBM in 1994. The headquarters is located in Waltham (Massachusetts).
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