Economy

Open Text buying GXS Group in $1.17B deal

NEW YORK (AP) — The software company Open Text will spend approximately $1.17 billion to acquire cloud-technology provider GXS Group in a cash-and-stock deal.

Open Text, based in Waterloo, Ontario, will pay about $1.07 billion in cash and $100 million of its stock. When the deal closes, part of the cash portion of the purchase price will be used to repay some GXS debt, company officials said Tuesday.

GXS stockholders are expected to own about 2.1 percent to 2.4 percent of Open Text's stock once the acquisition is complete. The companies will have about 80,000 customers combined once the transaction closes.

GXS Group Inc., a business-to-business service provider, will become a subsidiary of Open Text Corp. Open Text anticipates the transaction adding to its adjusted earnings in fiscal 2014, and plans to finance the cash part of the acquisition with available cash and proceeds from a new credit facility. Open Text has committed bank financing of up to $800 million from Barclays and RBC Capital.

The deal is expected to close within 90 days, during Open Text's fiscal third quarter.

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