AInvest Newsletter
Daily stocks & crypto headlines, free to your inbox
OpenText to Sell Non-Core Business Unit for $163 Million, Accelerates Divestment Strategy
ByAinvest
Thursday, Oct 2, 2025 5:50 pm ET1min read
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 [1][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 [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 [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.
Ainvest News articles are AI-generated using advanced large language model (LLM) technology designed to analyze and synthesize publicly available data and news. While AI tools assist in producing initial drafts and insights, all AI generated content published on Ainvest is subject to comprehensive human editorial review before publication. A designated human editor reviews, verifies, and approves each article for factual accuracy, coherence, and compliance with AInvest Fintech Inc’s editorial and disclosure standards.
Despite these review procedures, the information provided may still contain inaccuracies, incomplete data, or time sensitive references due to the inherent limitations of AI generated analysis and evolving changes. The material is provided strictly for informational and educational purposes and does not constitute personalized investment, legal, or financial advice. Readers should independently verify all facts, figures, and statements before making any decision based on this content.
AInvest Fintech Inc. its affiliates, and partners accept no liability or responsibility for any direct or consequential losses arising from reliance on this content. All articles and analyses are subject to revision, update, or removal without prior notice to maintain accuracy and integrity in our publications.
Comments

No comments yet