Rocket Software announces $2.3bn acquisition of OpenText’s AMC business

Rocket Software, Inc., a global technology leader, today announced its definitive agreement to acquire the Application Modernization and Connectivity (AMC) business of OpenText, a deal valued at $2.275 billion. The AMC business was formerly part of Micro Focus.

Rocket Software’s Commitment to Modernization

For years, Rocket Software has been a key player in solving complex IT challenges across infrastructure, data, and applications. This acquisition furthers its hybrid cloud strategy, empowering customers to optimize their application portfolio and bridge the gap to modern use cases without disrupting mission-critical operations.

AMC: A Leader in Application Modernization

AMC is renowned for its industry-leading tools in application modernization, including COBOL and host connectivity. These tools allow organizations to leverage core applications and offer flexibility for modernization across on-premises and hybrid cloud strategies.

Expansion in Application Modernization: Rocket Software to Acquire AMC from OpenText

Strategic Objectives of the Acquisition

Rocket Software’s acquisition of AMC aligns with five key strategic objectives:

1. Addressing organizations at any stage of their modernization journey with a comprehensive product portfolio.

2. Enabling customers to innovate while deriving value from their core business applications.

3. Strengthening Rocket Software’s position in hybrid cloud and ensuring sustainable growth in legacy enterprise IT.

4. Extending Rocket Software’s R&D expertise and fostering innovation with technologies like generative AI.

5. Solidifying Rocket Software as the partner of choice for industry and customer needs.

Leadership’s Vision for the Future

Milan Shetti, President and CEO of Rocket Software, emphasized the company’s commitment to meeting customers wherever they are in their modernization journeys. “This acquisition marks an extraordinary moment for our company, the market, and the organizations who share our vision of a hybrid cloud reality,” he stated.

Enhancing Customer Service and Innovation

With this acquisition, Rocket Software combines its industry-leading customer service with additional resources for innovation. The company aims to meet immediate customer needs and assist in their transformation over time.

Funding and Closure of the Deal

Rocket Software plans to fund the acquisition through new cash equity from shareholders, committed debt financing, and cash from its balance sheet. The transaction is anticipated to close in Q2 2024, subject to regulatory approvals and customary closing conditions.

Financial advisors to Rocket Software include RBC Capital Markets, LLC, Barclays Capital Inc., Deutsche Bank Securities Inc., and UBS Securities LLC, with debt financing provided by several major banks.