OpenText has completed its massive $5.8 billion acquisition of software and cybersecurity specialist Micro Focus, creating one of the largest information management and security companies in the world, CRN reports.

However, OpenText said in a statement that it expects “to balance the combined company through an approximately 8 percent reduction in workforce due to the Micro Focus acquisition.”

Those employee cuts will result in “cost synergies of $400 million,” the Waterloo, Canada-based company said.

According to OpenText, the merger will create a workforce of approximately 25,000 professionals. Micro Focus has about 11,000 employees globally, while OpenText has a total of about 14,000 employees on a global basis.

OpenText reported fiscal year 2022 revenue of $3.5 billion, including cloud revenue of $1.5 billion, customer support revenue of $1.3 billion, licensing revenue of $350 million and professional services revenue of $270 million.

“This new generation of information management software will help organizations accelerate their digital transformation and drive growth while reducing costs,”

said Mark Barrenechea, OpenText’s CEO.

His company will expand to help enterprises secure their operations, gain more insight into their information, and better manage an increasingly hybrid and complex digital fabric with new tools that include cybersecurity, digital operations management, application modernization and delivery, and AI and analytics.

Micro Focus is the latest in a string of software acquisitions OpenText has made in recent years.

Tags: , , , , , , , , , , , , ,
Editor @ DevStyleR