Business Cloud News
OpenText's acquisition of GXS Group will create give it a robust technology and services platform to build on

OpenText’s acquisition of GXS Group will create give it a robust technology and services platform to build on

OpenText, one of Canada’s largest software companies specialising in information management agreed Wednesday to buy Virginia-based GXS Group, a B2B cloud integration specialist. OpenText said the acquisition will add a robust new technology and services offering and bolster its growing cloud portfolio.

GXS Group provides a cloud-based business integration platform that essentially operates as a trading exchange. Its offering is typically aimed at larger businesses with robust supply chains that require a number of integration points connecting back-end services that support functions like inventory management and invoicing.

The company claims to have 550,000 trading partners connecting and exchanging commercial information in 12 languages on the managed cloud platform, and when combined with GXS will have over 80,000 customers.

The deal will see OpenText acquire GXS Group for $1.065bn in cash, with a further payment of $100m in common shares for a grand total of just under $1.17bn. As part of the agreement OpenText will also bring GXS’s global staff on board, approximately 2,900 across twenty countries, adding to its 5,000-strong workforce.

“The next generation of enterprise software is Enterprise Information Management,” said OpenText chief executive officer Mark J. Barrenechea. “Today’s GXS announcement strengthens the information exchange pillar with the addition of market leading cloud-based B2B integration services, it expands the EIM buying centres and it strengthens EIM with the addition of cloud-based managed services. I look forward to welcoming GXS employees, customers and partners to OpenText in the near future.”

OpenText said the new trading platform will add significant new capabilities that will help existing clients integrate, orchestrate and automate multi-enterprise businesses processes in the cloud.

While the deal didn’t fetch as much SAP’s 2012 acquisition of Ariba ($4.3bn), a GXS competitor offering a similar cloud-based exchange, Barrenechea said the acquisition will create many new opportunities to cross-sell to existing customers and add some new technologies to the company’s growing cloud portfolio.

The latest acquisition also comes several months after its August 2013 purchase of Cordys, a cloud-enabled business process management platform which, like its 2012 acquisition of B2B software as a service provider EasyLink, was largely technology-motivated according to Gartner.