OpenText Corp to Divest edocs Business for US$163M

By Hao Liu • Friday, October 03 15:35 • Permanent Link

OpenText Corporation (NASDAQ: OTEX, TSX: OTEX) has reached a definitive agreement to divest its on-premise solution, edocs, as part of its analytics portfolio, to NetDocuments for a total of US$163 million in cash. The edocs business contributed approximately $30 million in annual revenue to OpenText in its fiscal year that ended on June 30, 2025.

The transaction is expected to close by early 2026, subject to customary approvals and closing conditions. Under the terms of the agreement, the software, customer contracts, associated services, and employees will be integrated into NetDocuments.

OpenText Corporation intends to utilize the proceeds from the sale to reduce its outstanding debt. Tom Jenkins, OpenText's Executive Chairman of the Board and Chief Strategy Officer, stated that this divestiture aligns with the company's strategy of focusing on growing its core business centered on secure information management for AI and exploring portfolio-shaping opportunities to rationalize non-core assets from its product portfolio.

James McGourlay, OpenText's Interim Chief Executive Officer, expressed gratitude to the teams, customers, and partners for their ongoing support and highlighted that NetDocuments will be a great partner for the users of the edocs solution, with intentions to work closely with them to ensure a seamless transition.

Goldman Sachs & Co. LLC is serving as the financial advisor to OpenText in this transaction. As a result of these announcements, the company's shares have moved 0.24% on the market, and are now trading at a price of $37.75. Check out the company's full 8-K submission here.

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