Open Text Jumps to Record as CEO Pledges Acquisition DriveHugo Miller
Open Text Corp., the business-software maker that just completed a $1.17 billion acquisition, soared to a record after saying it plans to spend another $3 billion on deals.
The stock climbed 11 percent to $100.16 at the close in New York after Chief Executive Officer Mark Barrenechea said the company will scout transactions over the next five years. That’s the highest since its initial public offering in January 1996.
“Over the last 20 years we’ve done 48 acquisitions, putting $3.4 billion of capital to work,” Barrenechea said in a telephone interview yesterday after the Waterloo, Ontario-based company released quarterly earnings. “Over the next five years, we conservatively estimate we have $3 billion of capital to put to work.”
The software maker gets more than 90 percent of sales from outside Canada and plans to further expand in the U.S., Europe, the Middle East and Latin America. Barrenechea, whose Silicon Valley background includes six years at Oracle Corp., on Jan. 16 bought GXS Group Inc., a seller of cloud-based software integration services.
Open Text yesterday reported profit and sales that beat analysts’ average estimates, according to data compiled by Bloomberg. It also said it will split its stock 2-for-1.
The company’s stock jumped 65 percent last year, compared with a 38 percent gain for the Nasdaq Stock Market.