OpenText to Sell Non-Core Business Unit for $163 Million, Accelerates Divestment Strategy

OpenText to divest non-core unit, eDOCS, to NetDocuments for $163 million in cash. The unit contributed $30 million in annual revenue and will be integrated into NetDocuments. Proceeds will be used to reduce debt. The transaction aligns with OpenText's strategy of divesting non-core businesses and focusing on core growth drivers.

OpenText Corporation (NASDAQ: OTEX) has announced a significant move in its strategic realignment by agreeing to divest its on-premise solution, eDOCS, to NetDocuments for $163 million in cash OpenText to divest non-core unit for $163 million^[1]OpenText to Strategically Divest Non-Core Unit for US$163 Million^[2]. The transaction, which is expected to close by early 2026, aligns with OpenText's strategy of focusing on its core business and reducing debt.

eDOCS, a part of OpenText's Analytics product group, contributed approximately $30 million in annual revenue during OpenText's fiscal year ended June 30, 2025. The business will be integrated into NetDocuments, a leading provider of cloud-based legal technology solutions. The integration is expected to provide a seamless transition for eDOCS users and enhance NetDocuments' offerings.

OpenText intends to use the proceeds from the sale to reduce its outstanding debt, a move that will strengthen its financial position. The divestiture is part of OpenText's broader strategy to rationalize non-core assets and focus on businesses that drive future revenue growth.

The transaction was advised by Goldman Sachs & Co. LLC, highlighting OpenText's commitment to professional financial management. OpenText's Executive Chairman of the Board and Chief Strategy Officer, Tom Jenkins, emphasized that the divestiture will enable the company to continue enhancing shareholder value by exploring portfolio-shaping opportunities OpenText to Strategically Divest Non-Core Unit for US$163 Million^[2].

Interim Chief Executive Officer James McGourlay expressed gratitude to OpenText's teams, customers, and partners for their ongoing support and noted that NetDocuments will be a valuable partner for eDOCS users, ensuring a smooth transition OpenText to Strategically Divest Non-Core Unit for US$163 Million^[2].

This move underscores OpenText's commitment to strategic alignment and financial discipline, positioning the company for future growth in its core areas of secure information management for AI.