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Open Text Adds to Spending Spree With $1.6 Billion Dell Deal

  • Biggest Canadian tech acquisition since CGI bought Logica
  • Deal could prompt credit rating downgrade from Moody’s
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Open Text Corp. said it will buy Dell Technologies Inc.’s enterprise content business for $1.6 billion, the biggest deal ever for the highly-acquisitive Canadian software company. Its stock soared the most in seven months.

The deal removes one of Open Text’s biggest competitors in its core area of expertise -- helping companies organize and access large amounts of their own information. The transaction includes Documentum, corporate document tracking software that was part of EMC, which Dell acquired earlier this month, the company said Monday in a statement. Open Text’s stock rose 9 percent to C$85.01, the biggest single-day jump since February. Moody’s Investor Service said it would review the company for a possible credit rating downgrade.