NewsOpenText Inks Conclusive Agreement to Buy Daegis Inc.

OpenText Corporation, the worldwide leader in Enterprise Information Management (EIM), has announced that it has entered into a final agreement to acquire Daegis Inc., a global data migration solutions, information governance and development tools firm.

According to a release, the deal has already been approved by the Board of Directors of both the companies. As per the terms of the agreement, Company D Merger Sub Inc., a newly formed, indirect wholly-owned subsidiary of OpenText, will initiate a tender offer for all the outstanding shares of Daegis at $ 0.82 per share in cash, for an approximate total equity value of $13.5 million. OpenText will be funding the purchase with the cash it has on hand.

OpenText plans to commence its tender offer for all the shares of the common stock of Daegis within 10 business days. The offer is subject to the tender of a majority of Daegis’ shares and certain other customary closing conditions. According to the terms of the agreement, the tender offer will be followed by a merger to acquire any remaining untendered shares of Daegis. The entire transaction is expected to close in the Q2 of OpenText’s fiscal 2016.