The information management platform OpenText is in talks to acquire the enterprise software company Micro Focus. Both companies’ boards have reached an agreement on what the terms of the acquisition would be. 

OpenText’s CEO Mark J Barrenechea commented that this acquisition will position the company as one of the biggest software and cloud companies in the world as it will already have a large customer base, global scale, and go-to-market capabilities. 

For context, Micro Focus earns $2.9 billion in annual revenue, generates revenue in 180 countries, and 40% of its employees focus on R&D. 

In addition, customers of the companies will benefit from the deal and be able to accelerate their digital transformations through the new capabilities that will be unlocked, Barrenechea added. 

“The premium offered demonstrates the significant progress we have made transforming the business,” said Greg Lock, chairman of Micro Focus. “OpenText not only shares our values but will offer new opportunities for both our customers and employees.”

It is expected that the two companies will produce a combined revenue of $6.2 billion USD by fiscal year 2025.