GovCon M&A Corner
OpenText expanding through acquisition with a $6B Micro Focus deal.
OpenText agrees to acquire Micro Focus in a deal valued at around $6 billion, with an equity value of around $2.1 billion. The companies calculated that the per-share price offered represents a 98.3% premium to the closing price of Micro Focus before the deal was announced. Micro Focus, which is neither micro nor focused, has run into hard times in recent years, with declining revenue every year since 2018. Further, its stock price has dropped over 44% this year and more than 89% for the prior five years. This morning, it traded at just $3.15 per share on U.S. markets, leaving it vulnerable to a takeover.
Sigma7 acquires threat intelligence data and software provider
Sigma7 has acquired Intelligence Fusion, a Durham UK-based data and software solutions business whose transformative technology provides intelligence-community grade, client-specific, security and threat information. Sigma7 is a portfolio company of Growth Catalyst Partners. Intelligence Fusion was acquired from The Finance Durham Fund, which is administered by Maven Capital Partners. The transaction terms were not disclosed.