Rocket Software has signed a definitive agreement to acquire for US$2.275 billion the application modernisation and connectivity business (AMC) of OpenText, which was formerly part of Micro Focus.
The deal is expected to close in the second quarter of 2024 or by June 30, subject to receipt of applicable regulatory approvals and other customary closing conditions.
Rocket Software intends to fund the acquisition with a combination of new cash equity from its existing shareholders, committed debt financing, and cash from its balance sheet.
Rocket Software’s hybrid cloud strategy empowers customers to optimise their application portfolio wherever they are in their modernisation journey, enabling them to bridge the gap to modern use cases without disrupting their mission-critical operations.
This approach allows organisations to benefit from the mainframe’s security and dependability while also taking advantage of powerful analytics tools in the cloud.
AMC provides tools including COBOL and host connectivity. These tools enable organisations to leverage their core applications and offer flexibility for modernisation, allowing them to run applications wherever they choose.
With AMC, Rocket Software expects to have a more diverse modernisation portfolio that aligns with customer demands, whether on-premises or through a hybrid cloud strategy.
“For the many enterprise organisations who are built on the mainframe and ready to unlock opportunity using hybrid cloud, reality calls for a continuum with solutions and expertise that span both worlds ,” said Milan Shetti, Rocket Software President and CEO.
By combining Rocket Software’s customer service with more resources to innovate, the company expects to be uniquely positioned in the market to not only meet customers’ immediate needs but also to help them transform over time.
These deep customer relationships will strengthen retention, broaden cross-sell opportunities, and drive sustainable growth for the business.