Rocket Software Inc., an IT company serving infrastructure, data and applications and a portfolio company of Bain Capital, has purchased the Application Modernization and Connectivity business (AMC) of OpenText (Nasdaq: OTEX), which was formerly part of Micro Focus. The total purchase price is $2.275 billion.
AMC provides tools including COBOL and host connectivity. These tools work to help organizations leverage their core applications and offer flexibility for modernization, allowing them to run applications wherever they choose. With AMC, Rocket Software aims to have a more diverse modernization portfolio that aligns with customer demands, whether on-premises or through a hybrid cloud strategy.
RBC Capital Markets LLC, Barclays Capital Inc., Deutsche Bank Securities Inc., and UBS Securities LLC are serving as financial advisors to Rocket Software. Ernst & Young LLP served as accounting advisor to Rocket Software. Kirkland & Ellis LLP served as legal advisor to Rocket Software. Debt financing for the transaction will be provided by RBC Capital Markets, Barclays Capital, Deutsche Bank Securities, UBS Securities, Citigroup Global Markets, HSBC Securities, Mizuho Securities, and SMBC Nikko Securities.