Open Text to buy PE-backed GXS Group for $1.165 bln

Waterloo, Ont.-based Open Text Corp (NASDAQ: OTEX, TSX: OTC), an enterprise data management software company, has agreed to acquire GXS Group Inc, a provider of business-to-business cloud integration based in Gaithersburg, Maryland. The purchase price is US$1.165 billion. OpenText will pay US$1.065 billion in cash and US$100 million in its common shares. The deal is targeted to close within 90 days. GXS was founded in 2002 as a spin-out from General Electric Co., and bought by U.S. private equity and venture firms Francisco Partners and Norwest Venture Partners. Cerberus Capital Management and Golden Gate Management are also investors in the company.

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