OpenText, a global leader in Enterprise Information Management (EIM), announced that it has entered into a definitive agreement to acquire Dell EMC’s Enterprise Content Division (ECD), including Documentum.
ECD offers a suite of leading Enterprise Content Management solutions with deep industry focus, including the Documentum, InfoArchive, and LEAP product families.
Under the terms of the agreement, the software, associated services, and employees of ECD will be integrated into OpenText. The acquisition is expected to deepen OpenText’s EIM offering with a substantial portfolio focused on Enterprise Content Management (ECM) and Information Life Cycle Management.
With strong industry offerings, expertise and footprints in healthcare, life sciences, and public sector, plus additional capacity in financial services, energy, and engineering, OpenText will further strengthen its vertical offerings, customer base, managed services, and geographical coverage.
OpenText and Dell EMC also announced their intention to negotiate and enter into a strategic commercial partnership to expand customer offerings and to better serve customer needs.
“We are at the beginning of the Digital revolution where extreme connectivity, automation, and computing are converging,” said OpenText CEO and CTO Mark J. Barrenechea. “This acquisition further strengthens OpenText as a leader in Enterprise Information Management, enabling customers to capture their Digital future and transform into information-based businesses. We are very excited about the opportunities which ECD and Documentum bring, and I look forward to welcoming our new customers, employees, and partners to OpenText.”
Gartner: Acquisition makes OpenText largest ECM player
According to Gartner, OpenText will gain one of the world’s biggest providers of ECM. Additionally, OpenText will now become the largest ECM vendor in both market share and global footprint.
The company has now managed to assemble one of the most complex portfolios of any content vendor with many overlaps in key disciplines like core repository, document capture, records management and many more.
Gartner also notes that the deal with Dell EMC follows closely after OpenText had aquired software assets from HP. The analysts show that both OpenText and Dell EMC have been facing a decline in their market share in recent history, with the market shifting to other providers.
With it’s new advantage in size, OpenText can take up the opportunity of leveraging it’s dominance in the work-intensive SAP archiving market.