OPEN TEXT CORPORATION WATERLOO, Ontario, Dec. 5, 2014 /PRNewswire/ -- OpenText Corporation (NASDAQ: OTEX) (TSX: OTC), a global leader in Enterprise Information Management (EIM), today announced a definitive agreement to acquire Actuate Corporation (NASDAQ: BIRT) - The BIRT Company(TM), the leader in personalized analytics and insights.((1))
Under the terms of the agreement, which has been approved by the boards of directors of both companies, a newly formed, wholly-owned subsidiary of OpenText will commence a tender offer for all outstanding shares of Actuate for $6.60 per share in cash, for a total equity value of approximately $330 million, less Actuate's cash, for an enterprise value of approximately $272 million. OpenText will fund the acquisition with cash on hand.
OpenText intends to commence a tender offer for all of the shares of common stock of Actuate within 7 business days. Under the agreement, the tender offer will be followed by a merger to acquire any untendered shares. The tender offer is subject to the tender of a majority of Actuate's shares and certain other customary closing conditions. It is expected that the transaction will close in the third quarter of OpenText's fiscal 2015.
For more information, download the presentation posted on OpenText's Investor Relations website: investors.opentext.com.
Additional Information
The tender offer described in this press release has not yet commenced. This press release is provided for informational purposes only and does not constitute an offer to purchase or the solicitation of an offer to sell any securities. At the time the tender offer is commenced, OpenText and its wholly-owned subsidiary, Actuate Acquisition Corporation, intend to file with the Securities and Exchange Commission (the "SEC") a Tender Offer Statement on Schedule TO containing an offer to purchase, a form of letter of transmittal and other documents relating to the tender offer, and Actuate intends to file with the SEC a Solicitation/Recommendation Statement on Schedule 14D-9 with respect to the tender offer. OpenText, Actuate Acquisition Corporation and Actuate intend to mail these documents to the Actuate stockholders. Investors and shareholders should read those filings carefully when they become available as they will contain important information about the tender offer. Those documents, as well as OpenText's other public filings with the SEC, may be obtained without charge at the SEC's website at www.sec.gov and at OpenText's website at www.OpenText.com. The offer to purchase and related materials may also be obtained (when available) for free by contacting the information agent for the tender offer.
About OpenText
OpenText is the largest independent software provider of Enterprise Information Management (EIM). For more information please visit www.opentext.com.
About Actuate - The BIRT Company (TM)
Actuate provides software to more than 3.5 million BIRT developers and OEMs who build scalable, secure solutions that save time and improve brand experience by delivering personalized analytics and insights to over 200 million of their customers, partners and employees. Actuate founded and supports BIRT - the open source IDE - and develops BIRT iHub(TM) - the world-class deployment platform - to significantly improve productivity of developers working on customer facing applications. Actuate's BIRT Analytics(TM)delivers self-service predictive analytics to enhance customer engagement using Big Data. The Actuate Customer Communication Suite(TM) empowers organizations to easily transform, process, personalize, archive and deliver high volume content and individualized correspondence. Actuate is headquartered in Silicon Valley with more than 5,000 enterprise customers in financial services, technology and government. Visit actuate.com and developer.actuate.com.
Cautionary Statement Regarding Forward-Looking Statements
Certain statements in this press release, including statements regarding the proposed transaction between OpenText and Actuate, OpenText's and Actuate's financial results and estimates and/or business prospects, the combined company's plans, objectives, expectations and intentions, leadership in the EIM and analytics and insights industries and the expected size, scope and growth of the combined company's operations and the markets in which it will operate, expected synergies, as well as the expected timing and benefits of the transaction, may contain words such as "expects," "may," "potential," "upside," "approximately," "project," "would," "could," "should," "will," "anticipates," "believes," "intends," "estimates," "targets," "plans," "envisions," "seeks" and other similar language and are considered forward-looking statements or information under applicable securities laws. These statements are based on OpenText's current expectations, estimates, forecasts and projections about the proposed transaction and the operating environment, economies and markets in which OpenText and Actuate operate, are subject to important risks and uncertainties that are difficult to predict and the actual outcome may be materially different. These statements reflect beliefs and assumptions that are based on OpenText's and Actuate's perception of historical trends, current conditions and expected future developments as well as other factors management believes are appropriate in the circumstances. In making these statements, OpenText and Actuate have made assumptions with respect to the ability of OpenText and Actuate to achieve expected synergies and the timing of same, the ability of OpenText and Actuate to predict and adapt to changing customer requirements, preferences and spending patterns, the ability of OpenText and Actuate to protect their intellectual property, future capital expenditures, including the amount and nature thereof, trends and developments in the information technology and financial sectors and other sectors of the economy that are related to these sectors, business strategy and outlook, expansion and growth of business and operations, credit risks, anticipated acquisitions, future results being similar to historical results, expectations related to future general economic and market conditions and other matters. OpenText's and Actuate's beliefs and assumptions are inherently subject to significant business, economic, competitive and other uncertainties and contingencies regarding future events and as such, are subject to change. OpenText's beliefs and assumptions may prove to be inaccurate and consequently OpenText's actual results could differ materially from the expectations set out herein.
Actual results or events could differ materially from those contemplated in the forward-looking statements as a result of the following:
(i) risks and uncertainties relating to
the transaction, including (a) the
risk that the businesses will not be
integrated successfully or such
integration may be more difficult,
time-consuming or costly than
expected, which could result in
additional demands on OpenText's
resources, systems, procedures and
controls, disruption of its ongoing
business and diversion of
management's attention from other
business concerns, (b) the
possibility that certain assumptions
with respect to Actuate or the
transaction could prove to be
inaccurate, (c) failure to receive,
delays in the receipt of, or
unacceptable or burdensome
conditions imposed in connection
with, all required regulatory
approvals and the satisfaction of
the closing conditions to the
transaction, (d) the potential
failure to retain key employees of
OpenText or Actuate as a result of
the proposed transaction or during
integration of the businesses and
(e) disruptions resulting from the
proposed transaction, making it more
difficult to maintain business
relationships;
(ii) risks and uncertainties relating to
OpenText, including (a) the future
performance, financial and
otherwise, of OpenText, (b) the
ability of OpenText to bring new
products to market and to increase
sales, (c) the strength of
OpenText's product development
pipeline, (d) OpenText's growth and
profitability prospects, (e) the
estimated size and growth prospects
of the EIM market, (f) OpenText's
competitive position in the EIM
market and its ability to take
advantage of future opportunities in
this market, (g) the benefits of
OpenText's products to be realized
by customers, and (h) the demand for
OpenText's products and the extent
of deployment of OpenText's products
in the EIM marketplace; and
(iii) risks and uncertainties relating to
future events, conditions or
circumstances, or other general
risks, including (a) integration of
other acquisitions and related
restructuring efforts, including the
quantum of restructuring charges and
the timing thereof, (b) the
possibility that OpenText may be
unable to meet its future reporting
requirements under the U.S.
Securities Exchange Act of 1934, as
amended, and the rules promulgated
thereunder, (c) the risks associated
with bringing new products to
market, (d) fluctuations in currency
exchange rates, (e) delays in the
purchasing decisions of OpenText's
customers, (f) the competition
OpenText faces in its industry and/
or marketplace, (g) the possibility
of technical, logistical or planning
issues in connection with the
deployment of OpenText's products or
services, (h) the continuous
commitment of OpenText's customers;
and (i) demand for OpenText's
products.
For additional information with respect to risks and other factors which could occur, see OpenText's Quarterly Report on Form 10-Q filed on October 23, 2014, Annual Report on Form 10-K, including Part I, Item 1A, "Risk Factors" therein, other Quarterly Reports on Form 10-Q, Current Reports on Form 8-K and other securities filings with the SEC that are available at the SEC's website at www.sec.gov and other securities regulators. Many of these factors are beyond OpenText's control. Unless otherwise required by applicable securities laws, OpenText disclaims any intention or obligations to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
OTEX-MNA
Note:
(1) All dollar amounts in this press release are in U.S. Dollars unless otherwise indicated.
Further information:
Greg Secord
Vice President, Investor Relations
Open Text Corporation
San Francisco: (415) 963-0825
gsecord@opentext.com
Kasey Holman
Vice President, Corporate Communications
Open Text Corporation
San Francisco: (415) 500-9551
kholman@opentext.com
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SOURCE Open Text Corporation
