Open Text Corp Sells eDocs to NetDocuments for $163 Million

By Tamara Parker • Friday, October 03 12:04 • Permanent Link

Open Text Corporation (NASDAQ: OTEX) has announced a strategic divestiture of its on-premise solution (eDocs), a part of its analytics portfolio, to NetDocuments for a total of US$163 million in cash. This move aligns with Open Text's strategy to divest non-core businesses and focus on growing its core business centered on secure information management for AI.

The eDocs business, which primarily focuses on automating the work of legal professionals, contributed approximately $30 million in annual revenue in Open Text's fiscal year ended June 30, 2025. The proceeds from this divestiture will be used to reduce the company's outstanding debt.

Goldman Sachs & Co. LLC is serving as the financial advisor to Open Text in this transaction. The agreement includes the integration of software, customer contracts, associated services, and employees into NetDocuments, with the transaction expected to close by early 2026, subject to customary approvals and closing conditions.

Open Text's Executive Chairman of the Board and Chief Strategy Officer, Tom Jenkins, stated, "This divestiture further enables our continued focus on growing our core business centered on secure information management for AI. We will continue to enhance shareholder value by exploring portfolio-shaping opportunities that rationalize non-core assets from our product portfolio."

James McGourlay, Open Text's Interim Chief Executive Officer, expressed gratitude to the teams, customers, and partners for their ongoing support and highlighted NetDocuments as a great partner for the users of the eDocs solution. He also emphasized Open Text's intention to work closely with NetDocuments to ensure a seamless transition for all involved parties.

This move reflects Open Text's commitment to strengthening its focus on businesses that will drive future revenue growth while exploring opportunities to enhance shareholder value through portfolio-shaping initiatives. As a result of these announcements, the company's shares have moved 1.4% on the market, and are now trading at a price of $37.66. If you want to know more, read the company's complete 8-K report here.

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