OpenText Sells Vertica for US$150 Million, Will Allocate Proceeds to Debt Reduction
OpenText has sold its non-core Vertica analytics platform to Rocket Software for US$150 million in cash before taxes, fees, and adjustments. The company will apply the net proceeds to reduce outstanding debt and redeploy capital into its core data management and enterprise AI offerings.
1. Transaction Details
OpenText sold its Vertica analytics platform to Rocket Software for US$150 million in cash before taxes, fees, and other adjustments, completing the divestiture under agreed terms.
2. Strategic Rationale
The sale aligns with OpenText’s non-core divestiture strategy, allowing the company to concentrate investment and resources on its core data management and enterprise AI businesses.
3. Use of Proceeds
OpenText plans to use the net proceeds from the transaction to pay down outstanding debt, reinforcing its disciplined approach to capital allocation and financial stability.
4. Transfer of Operations
Under the agreement, Rocket Software will assume ownership of the Vertica software, associated client contracts, services and related employees to ensure continuity for customers.