Covisint Acquired for $103 Million by Data Management Vendor OpenText
Southfield, Michican-based Identity Management company Covisint has entered into a definitive agreement to be acquired by data management firm OpenText. Covisint is a cloud platform provider for building Identity and Internet of Things applications. Covisint was founded in 2000 as a consortium that included General Motors, Ford and DaimlerChrysler. It was acquired by Compuware Corp. in 2004 and spun off as a separate company in 2014.
The merger will enhance the provider’s EIM offering with cloud-based IoT Platform as a Service and expand the vendor’s presence in the auto industry through partnerships for supply chain collaboration. Covisint will be integrated into the OpenText Business Network, a portfolio of cloud solutions and software that facilitates efficient, secure, and compliant information flows between organizations.
The transaction is worth $103 million in market value, which translates to $75 million in enterprise value. The purchase price per share is $2.45. OpenText plans to fund the acquisition in an all-cash deal, and is expected to close in the third quarter of 2017 and is subject to customary closing conditions.
OpenText has made several notable acquisitions over the last 18 months, spending more than $2.47 billion in total. In April of 2016, they swallowed up the software segment of HP, the 3rd largest software company in the world from a revenue perspective. Later that same month, they absorbed ANXeBusiness, a provider of managed network, transaction delivery, and product lifecycle management products and services. In June, enterprise search and categorization platform Recommind became a part of the Data Management behemoth.