UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): November 4, 2013
Open Text Corporation
(Exact name of Registrant as specified in its charter)
Canada | 0-27544 | 98-0154400 | ||
(State or other jurisdiction of incorporation) |
(Commission File Number) |
(IRS Employer Identification No.) |
275 Frank Tompa Drive, Waterloo, Ontario, Canada N2L 0A1
(Address of principal executive offices)
(519) 888-7111
(Registrants telephone number, including area code)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
¨ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
¨ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
¨ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Item 1.01 | Entry into a Material Definitive Agreement. |
Open Text Corporation (OpenText), and Ocelot Merger Sub, Inc., a Delaware corporation and a wholly-owned subsidiary of OpenText (Merger Sub), entered into an Agreement and Plan of Merger, dated as of November 4, 2013 (the Merger Agreement), with GXS Group, Inc., a Delaware corporation (GXS), and Global Acquisition LLC, solely in its capacity as the stockholders representative, providing for the acquisition of GXS by OpenText. GXS is a global provider of business-to-business cloud-based integration services and solutions. Subject to the terms and conditions of the Merger Agreement, which has been unanimously approved by the disinterested directors of OpenTexts board of directors and unanimously approved by GXSs board of directors, Merger Sub will be merged with and into GXS (the Merger), with GXS surviving the Merger as a wholly-owned subsidiary of OpenText. The Merger is expected to close during OpenTexts third fiscal quarter. Concurrently with the execution and delivery of the Merger Agreement, the principal stockholders of GXS (the Principal Stockholders), which hold at least 85% of the outstanding shares of GXSs common stock and at least 85% of the outstanding shares of GXSs preferred stock that together constitute at least 85% of the voting power of GXSs outstanding capital stock, delivered support agreements to OpenText and Merger Sub, and they subsequently delivered their approval and adoption of the Merger Agreement, the Merger and the other transactions contemplated thereby.
At the effective time of the Merger, each share of GXS common stock and GXS preferred stock outstanding immediately prior to the effective time (other than shares owned by (i) OpenText, Merger Sub or GXS or any of its subsidiaries (which will be cancelled) or (ii) stockholders who have properly exercised and perfected appraisal rights under Delaware law) will be converted into the right to receive a certain amount of cash and, in the case of GXS preferred stock, subject to certain conditions including satisfaction as to their status as accredited investors under the U.S. Securities Act of 1933, as amended, a specified number of OpenText common shares. The aggregate consideration payable is $1,165,000,000, consisting of $1,065,000,000 in cash (subject to adjustment for working capital and uncollected accounts receivable as set forth in the Merger Agreement), of which $60,000,000 will be held in escrow, and $100,000,000 aggregate amount in OpenText common shares. A portion of the cash consideration will be used to repay, defease or redeem GXS indebtedness under its wholly-owned subsidiaries outstanding credit agreement and outstanding notes. To the extent any preferred stockholder of GXS is not an accredited investor, the OpenText common shares allocable to such stockholder will be reallocated to other GXS preferred stockholders that are accredited investors (and the cash consideration payable to such preferred stockholders that are accredited investors will be correspondingly reduced), and such preferred stockholder that is not an accredited investor will receive an amount of cash determined pursuant to the Merger Agreement in lieu of such OpenText common shares. Subject to certain exceptions, GXSs stockholders have agreed to indemnify OpenText for certain breaches of representations, warranties and covenants and for certain pre-closing taxes. Such indemnification obligations are generally limited to the amount of cash held in escrow. Each OpenText common share outstanding immediately prior to the effective time will remain outstanding and will not be affected by the Merger. Upon completion of the Merger, the former GXS preferred stockholders will own approximately 2.1% to 2.4% of OpenTexts outstanding common shares, assuming no modifications to the number of common shares outstanding between the date hereof and the completion of the Merger other than the issuance of the share consideration pursuant to the Merger.
Neither OpenText nor Merger Sub will assume any currently issued and outstanding options or any other direct or indirect right to purchase GXS common stock or preferred stock. As soon as practicable, GXSs board of directors (or any relevant committee thereof) is required to adopt resolutions or take other actions to ensure that, at the effective time of the Merger, any option to purchase GXS common stock or preferred stock (whether vested or unvested and whether exercisable or not exercisable) that is outstanding and unexercised immediately prior to the effective time will terminate and be canceled at the effective time without payment therefor.
The consummation of the Merger is subject to certain customary conditions, including the expiration or termination of any applicable waiting periods under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended, and the expiration or termination of any applicable waiting periods or receipt of any applicable consents or approvals under any other applicable antitrust laws, and other customary closing conditions. The consummation of the Merger is not subject to any financing condition.
The Merger Agreement contains customary representations and warranties for a transaction of this type. The Merger Agreement also contains customary covenants, including a covenant providing for each of the parties to use reasonable best efforts to cause the transactions to be consummated. The Merger Agreement also requires GXS to conduct its operations in all material respects according to the ordinary course of business consistent with past practice during the period between the execution of the Merger Agreement and the closing of the Merger, subject to
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certain exceptions.
The Merger Agreement also contains certain rights to terminate the agreement prior to closing, including that, (a) the parties may terminate the transaction by mutual consent, and (b) either party will have the right to terminate the transaction (i) if the closing has not occurred on or before May 2, 2014, or another date agreed by the parties, subject to certain exceptions, (ii) a governmental entity takes final, non-appealable action prohibiting the Merger or enacts any law that makes consummation of the closing illegal or otherwise prohibited, or (iii) if the other party breaches the Merger Agreement (under certain circumstances).
OpenText intends to finance the cash consideration pursuant to the Merger with (i) cash on hand and (ii) the proceeds of a new credit facility. In connection therewith, OpenText has obtained a financing commitment (the Commitment Letter) from Barclays Bank PLC and Royal Bank of Canada (the Lenders), pursuant to which the Lenders have committed to provide up to $800 million pursuant to a seven-year senior secured term loan to finance the pending Merger. The obligations of the Lenders to provide the term loan under the Commitment Letter are subject to a number of customary conditions, including, without limitation, execution and delivery of definitive documentation consistent with the Commitment Letter and the documentation standard specified therein. The final termination date for the Commitment Letter is May 7, 2014.
The foregoing summaries of the Merger Agreement and the Commitment Letter and the transactions contemplated thereby do not purport to be complete and are subject to, and qualified in their entirety by, the full text of the Merger Agreement and the Commitment Letter, which OpenText intends to file as an amendment to this Form 8-K.
In connection with the Merger Agreement, OpenText has executed a registration rights agreement (the Registration Rights Agreement) for the benefit of the holders that, subject to certain conditions, receive OpenText common shares as consideration for the Merger or succeed to the rights of such holders under the Registration Rights Agreement from time to time. Subject to specified conditions, such holders will have (i) certain demand registration rights, up to two demands per year, giving such holders the right to request that OpenText file a registration statement or prospectus supplement to the prospectus contained in such registration statement for the resale of such OpenText common shares, and (ii) certain piggy-back registration rights.
The foregoing summary of the Registration Rights Agreement and the transactions contemplated thereby does not purport to be complete and is subject to, and qualified in its entirety by, the full text of the Registration Rights Agreement, which OpenText intends to file as an amendment to this Form 8-K.
As referred to above, concurrently and in connection with entering into the Merger Agreement, GXS, OpenText and each Principal Stockholder entered into a support agreement (each, a Support Agreement), pursuant to which, subject to the conditions set forth therein, such Principal Stockholder has agreed to, among other things, (i) the terms of the Merger Agreement to the extent they set forth obligations of such Principal Stockholder as a holder of GXS capital stock; (ii) the allocation of the consideration pursuant to the Merger, including the allocation of the OpenText common shares thereunder; (iii) not revoke its adoption and approval of the Merger Agreement, the Merger and the other transactions contemplated thereby; (iv) vote all shares of GXS capital stock owned by it, as well as any additional securities which it may acquire or own, against (A) any merger, consolidation, combination, sale of substantial assets, reorganization, recapitalization, dissolution, liquidation or winding up of or by GXS or any other alternative transaction (other than the Merger Agreement and the transactions contemplated thereby) or any other action or agreement that would result in a breach of any covenant, representation or warranty or any other obligation of GXS or such Principal Stockholder under the Support Agreement, the Merger Agreement, or any other agreement contemplated thereby or which would reasonably be expected to result in any of the conditions of OpenTexts obligations under the Merger Agreement not being fulfilled, and (B) any amendment of GXSs or any of its subsidiaries organizational documents, or other proposal or transaction, which would in any manner, impede, frustrate, prevent or nullify the Merger Agreement or the transactions contemplated thereby or change in any manner the voting rights of any class of GXSs capital stock, and (v) waive any appraisal or dissenters rights it may have and refrain from taking or participating in certain actions. Each Principal Stockholder is also subject to certain transfer restrictions and non-solicitation restrictions set forth in the Support Agreement.
The foregoing summary of the Support Agreements and the transactions contemplated thereby does not purport to be complete and is subject to, and qualified in its entirety by, the full text of the Support Agreements, which OpenText intends to file as an amendment to this Form 8-K.
The Merger Agreement, the Commitment Letter, the Registration Rights Agreement and the Support Agreements have been included solely to provide investors and security holders with information regarding their respective terms. None of these agreements are intended to be a source of financial, business or operational information about
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OpenText, GXS or their respective subsidiaries or affiliates. The representations, warranties and covenants contained in the Merger Agreement, the Commitment Letter, the Registration Rights Agreement and the Support Agreements, respectively, are made only for purposes of the applicable agreement and are made as of specific dates; are solely for the benefit of the parties; may be subject to qualifications and limitations agreed upon by the parties in connection with negotiating the terms of the Merger Agreement, the Commitment Letter, the Registration Rights Agreement and the Support Agreements, respectively, including being qualified by confidential disclosures made for the purpose of allocating contractual risk between the parties instead of establishing matters as facts; and may be subject to standards of materiality applicable to the contracting parties that differ from those applicable to investors or security holders. Investors and security holders should not rely on the representations, warranties and covenants or any description thereof as characterizations of the actual state of facts or condition of OpenText, GXS or their respective subsidiaries or affiliates. Moreover, information concerning the subject matter of the representations, warranties and covenants may change after the date of the Merger Agreement, the Commitment Letter, the Registration Rights Agreement or the Support Agreements, which subsequent information may or may not be fully reflected in public disclosures.
Item 3.02 | Unregistered Sale of Securities. |
Pursuant to the Merger Agreement and assuming satisfaction of the conditions to delivery of such share consideration, a portion of the consideration to be delivered to the preferred stockholders of GXS, subject to certain conditions, consists of approximately 1,297,521 to 1,434,102 OpenText common shares (to be determined pursuant to the terms of the Merger Agreement). These OpenText common shares are expected to be issued pursuant to the exemption from registration pursuant to Section 4(a)(2) of the U.S. Securities Act of 1933, as amended, and Rule 506(c) thereunder.
The information contained in Item 1.01 is hereby incorporated by reference into this Item 3.02.
Item 7.01 | Regulation FD Disclosure. |
On November 5, 2013, OpenText issued a press release regarding the matters described in Item 1.01 of this Current Report on Form 8-K. A copy of the press release is being furnished herewith as Exhibit 99.1.
Cautionary Statement Regarding Forward-Looking Statements
Certain statements set forth herein, including statements regarding the proposed Merger, the proposed financing of the Merger and expected number of common shares outstanding on completion of the Merger, the combined companys plans, objectives, expectations and intentions, leadership in the Enterprise Information Management (EIM) industry and in business-to-business (B2B) data integration services, creation of the largest information exchange trading network in the world and, the expected size, scope and growth of the combined companys operations and the market in which it will operate, expected synergies, as well as the expected timing and benefits of the transaction, may contain words such as could, expects, may, should, will, anticipates, believes, intends, estimates, targets, plans, envisions, seeks and other similar language and are considered forward-looking statements or information under applicable securities laws. These statements are based on OpenTexts current expectations, estimates, forecasts and projections about the proposed Merger and the operating environment, economies and markets in which the Company and GXS operate. These statements are subject to important risks and uncertainties that are difficult to predict, and the actual outcome may be materially different.
These statements reflect beliefs and assumptions which are based on OpenTexts and GXSs perception of historical trends, current conditions and expected future developments, as well as other factors management believes are appropriate in the circumstances. In making these statements, OpenText and GXS have made assumptions with respect to: the ability of OpenText and GXS to achieve expected synergies and the timing of same; the ability of OpenText and GXS to predict and adapt to changing customer requirements, preferences and spending patterns; the ability of OpenText and GXS to protect their intellectual property; future capital expenditures, including the amount and nature thereof; trends and developments in the information technology and financial sectors and other sectors of the economy which are related to these sectors; business strategy and outlook; expansion and growth of business and operations; credit risks; anticipated acquisitions; future results being similar to historical results; expectations related to future general economic and market conditions; and other matters. OpenTexts and GXSs beliefs and assumptions are inherently subject to significant business, economic, competitive and other uncertainties and
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contingencies regarding future events and as such, are subject to change. OpenTexts beliefs and assumptions may prove to be inaccurate and consequently OpenTexts actual results could differ materially from the expectations set out herein.
Actual results or events could differ materially from those contemplated in the forward-looking statements as a result of the following:
(i) | risks and uncertainties relating to the Merger and financing thereof, including: (a) the risk that the businesses will not be integrated successfully or such integration may be more difficult, time-consuming or costly than expected, which could result in additional demands on OpenTexts resources, systems, procedures and controls, disruption of its ongoing business and diversion of managements attention from other business concerns; (b) OpenTexts significantly increased levels of indebtedness as a result of the proposed Merger, which could limit OpenTexts operating flexibility and opportunities; (c) OpenTexts inability to complete the anticipated financing as contemplated by the Commitment Letter prior to the contractually required time for closing of the proposed Merger or otherwise secure favorable terms for such financing; (d) the possibility that certain assumptions with respect to GXS or the proposed Merger could prove to be inaccurate; (e) failure to receive, delays in the receipt of, or unacceptable or burdensome conditions imposed in connection with, all required regulatory approvals and the satisfaction of the closing conditions to the proposed Merger; (f) the potential failure to retain key employees of OpenText or GXS as a result of the proposed Merger or during integration of the businesses; and (g) disruptions resulting from the proposed Merger, making it more difficult to maintain business relationships; |
(ii) | risks and uncertainties relating to OpenText, including: (a) the future performance, financial and otherwise, of OpenText; (b) the ability of OpenText to bring new products to market and to increase sales; (c) the strength of OpenTexts product development pipeline; (d) OpenTexts growth and profitability prospects; (e) the estimated size and growth prospects of the EIM market; (f) OpenTexts competitive position in the EIM market and its ability to take advantage of future opportunities in this market; (g) the benefits of OpenTexts products to be realized by customers; and (h) the demand for OpenTexts products and the extent of deployment of OpenTexts products in the EIM marketplace; and |
(iii) | risks and uncertainties relating to future events, conditions or circumstances, or other general risks, including: (a) integration of other acquisitions and related restructuring efforts, including the quantum of restructuring charges and the timing thereof; (b) the possibility that OpenText may be unable to meet its future reporting requirements under the U.S. Securities Exchange Act of 1934, as amended, and the rules promulgated thereunder; (c) the risks associated with bringing new products to market; (d) fluctuations in currency exchange rates; (e) delays in the purchasing decisions of OpenTexts customers; (f) the competition OpenText faces in its industry and/or marketplace; (g) the possibility of technical, logistical or planning issues in connection with the deployment of OpenTexts products or services; (h) the continuous commitment of OpenTexts customers; and (i) demand for OpenTexts products. |
For additional information with respect to risks and other factors which could occur, see OpenTexts Annual Report on Form 10-K for the fiscal year ended June 30, 2013, including Part I, Item 1A, Risk Factors therein, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K and other securities filings with the Securities and Exchange Commission (the SEC) (which are available at the SECs website at www.sec.gov) and other securities regulators. Many of these factors are beyond the control of OpenText. Unless otherwise required by applicable securities laws, OpenText disclaims any intention or obligations to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
Item 9.01 | Financial Statements and Exhibits. |
(d) | Exhibits |
Exhibit No. |
Description | |
99.1 | Press Release issued by Open Text Corporation on November 5, 2013 |
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
OPEN TEXT CORPORATION | ||||||
November 5, 2013 | By: | /s/ Gordon A. Davies | ||||
Gordon A. Davies Chief Legal Officer and Corporate Secretary |
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Exhibit Index
Exhibit No. |
Description | |
99.1 | Press Release issued by Open Text Corporation on November 5, 2013 |
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Exhibit 99.1
OpenText Enters Into Agreement to Acquire GXS
Transaction Expected to Expand Information Exchange and Cloud Service Offerings
Waterloo, ON- 2013-November-5 Open Text Corporation (NASDAQ: OTEX) (TSX: OTC), a global leader in Enterprise Information Management (EIM), announced today that it has entered into an agreement and plan of merger (Merger Agreement) to acquire GXS Group, Inc. (GXS), a leader in business-to-business (B2B) cloud integration, pursuant to which GXS will become a wholly-owned subsidiary of OpenText. For more information, please see the informational presentation under the investor section of www.opentext.com.
About the Transaction(1)
| Purchase price of $1.165 Billion |
| Financing commitment of $800m Debt, $265m Cash |
| Equity of $100m, or 2.1 to 2.4% of OpenTexts outstanding common shares |
| Purchase price is 2.4x GXS Fiscal Year 2012 revenues |
| Targeting to onboard GXS to the OpenText operating model within 2 years |
| Targeting to be accretive to adjusted earnings for Fiscal Year 2014 |
| Targeting the transaction to close within 90 days |
| Subject to customary closing conditions |
GXSs cloud-based B2B integration services enables more than 550,000 trading partners to integrate and manage business processes and transactions across complex global networks of customers, partners and suppliers. GXSs cloud platform, the GXS Trading Grid, eliminates the ongoing complexities and costs of do-it-yourself B2B integration. GXS Managed Services enables customers to offload complex B2B e-commerce requirements to GXS, resulting in improved customer satisfaction, increased revenue and lower total cost of operations. GXS enables businesses to streamline new product launches, digitize accounts payable, automate warehouse receiving, conduct e-invoicing and e-payments and increase global supply chain visibility.
The next generation of enterprise software is Enterprise Information Management, said OpenText CEO Mark J. Barrenechea. Todays GXS announcement strengthens the Information Exchange pillar with the addition of market leading cloud-based B2B integration services, it expands the EIM buying centers and it strengthens EIM with the addition of cloud-based Managed Services. I look forward to welcoming GXS employees, customers and partners to OpenText in the near future.
This acquisition reinforces OpenTexts leadership in EIM by combining OpenTexts Information Exchange portfolio of Managed File Transfer, Secure E-mail, FAX, Capture and EDI with
GXSs portfolio of B2B integration services and managed services, which helps customers to extend their partner networks to automate multi-enterprise processes and manage value-added commerce transactions. Upon closing of the transaction, OpenText and GXS together expect to serve more than 80,000 customers and support approximately 16 billion annual transactions in the cloud.
In todays global and highly distributed business, the on-going complexities and costs of do-it-yourself B2B integration pose significant challenges to organizations that need to integrate and orchestrate multi-enterprise processes across time, geographies and a multitude of trading partners, said Bob Segert, President and Chief Executive Officer of GXS. Integrating the GXS portfolio into OpenText will allow CIOs to focus their efforts on driving revenue growth while enabling innovation to stay ahead of the competition.
The total enterprise value of the transaction is $1.165 billion. OpenText will pay an aggregate of $1.065 billion in cash and $100 million aggregate amount of OpenText common shares, in accordance with the terms of the Merger Agreement. Of the cash consideration to be paid to the GXS stockholders, $60 million is subject to escrow related to certain representations, warranties and covenants and the total consideration payable by OpenText is subject to adjustment based on GXSs working capital and other considerations as of the closing. Upon closing of the transaction, a portion of the cash consideration will be used to repay, defease or redeem GXS indebtedness under its wholly-owned subsidiaries outstanding credit agreement and outstanding notes. Upon completion of the transaction, GXS stockholders will own approximately 2.1 to 2.4% of OpenTexts outstanding common shares, assuming no changes to the number of common shares outstanding between the date hereof and the closing of the transaction other than the issuance of the share consideration. The transaction is expected to close during OpenTexts third fiscal quarter and is subject to customary regulatory approvals and closing conditions.
OpenText intends to finance the cash portion of the consideration pursuant to the proposed transaction with cash on hand and the proceeds of a new credit facility. In connection therewith, OpenText has obtained committed bank financing of up to $800 million. Barclays and RBC Capital Markets have provided the committed financing for the transaction. The lenders commitment to provide the new credit facility is subject to certain customary conditions, including execution and delivery of definitive documentation. Citigroup Global Markets Inc. acted as financial advisor to OpenText. J.P. Morgan acted as financial advisor to GXS.
Conference Call Information:
OpenText will host a conference call on Tuesday, November 5, 2013 at 8:30 a.m. ET to discuss the acquisition.
Date: | Tuesday, November 5, 2013 | |
Time: | 8:30 a.m. ET/5:30 a.m. PT | |
Length: | 30 minutes | |
Where: | 416-644-3415 (international)
877-974-0445 (toll-free) |
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Investors should dial in approximately 10 minutes before the teleconference is scheduled to begin. A replay of the call will be available beginning November 5, 2013 at 10:00 a.m. ET through 11:59 p.m. on November 19, 2013 and can be accessed by dialing 416-640-1917 (international) or 877-289-8525 (toll-free) and using passcode 4649293 followed by the number sign.
To view the presentation or listen to the call via webcast, please use the following link: http://investors.opentext.com
About OpenText
OpenText provides Enterprise Information Management software that helps companies of all sizes and industries to manage, secure and leverage their unstructured business information, either in their data center or in the cloud. Over 50,000 companies already use OpenText solutions to unleash the power of their information. To learn more about OpenText, please visit www.opentext.com.
About GXS
GXS is a leading B2B Integration Services provider servicing over 550,000 trading partners worldwide. GXS is privately held, headquartered in Gaithersburg, Maryland, and has approximately 2,900 employees, and reported Fiscal Year 2012 revenues of $487 Million. Customer base includes 50% of the Forbes Global 1000. To learn more about GXS, please visit www.gxs.com.
Cautionary Statement Regarding Forward-Looking Statements
Certain statements in this press release, including statements regarding the proposed transaction between Open Text Corporation (OpenText or the Company) and GXS Group, Inc. (GXS), the proposed financing of the transaction and expected number of common shares outstanding on completion of the transaction, the combined companys plans, objectives, expectations and intentions, leadership in the EIM industry and in B2B data integration services, creation of the largest information exchange trading network in the world and, the expected size, scope and growth of the combined companys operations and the market in which it will operate, expected synergies, as well as the expected timing and benefits of the transaction, may contain words such as could, expects, may, should, will, anticipates, believes, intends, estimates, targets, plans, envisions, seeks and other similar language and are considered forward-looking statements or information under applicable securities laws. These statements are based on the Companys current expectations, estimates, forecasts and projections about the proposed transaction and the operating environment, economies and markets in which the Company and GXS operate. These statements are subject to important risks and uncertainties that are difficult to predict, and the actual outcome may be materially different. These statements reflect beliefs and assumptions which are based on the Companys and GXSs perception of historical trends, current conditions and expected future developments, as well as other factors management believes are appropriate in the circumstances. In making these statements, the
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Company and GXS have made assumptions with respect to: the ability of the Company and GXS to achieve expected synergies and the timing of same; the ability of the Company and GXS to predict and adapt to changing customer requirements, preferences and spending patterns; the ability of the Company and GXS to protect their intellectual property; future capital expenditures, including the amount and nature thereof; trends and developments in the information technology and financial sectors and other sectors of the economy which are related to these sectors; business strategy and outlook; expansion and growth of business and operations; credit risks; anticipated acquisitions; future results being similar to historical results; expectations related to future general economic and market conditions; and other matters. The Companys and GXSs beliefs and assumptions are inherently subject to significant business, economic, competitive and other uncertainties and contingencies regarding future events and as such, are subject to change. The Companys beliefs and assumptions may prove to be inaccurate and consequently the Companys actual results could differ materially from the expectations set out herein.
Actual results or events could differ materially from those contemplated in forward-looking statements as a result of risks and uncertainties relating to the transaction and financing thereof, including: (a) the risk that the businesses will not be integrated successfully or such integration may be more difficult, time-consuming or costly than expected, which could result in additional demands on OpenTexts resources, systems, procedures and controls, disruption of its ongoing business and diversion of managements attention from other business concerns; (b) OpenTexts significantly increased levels of indebtedness as a result of the proposed transaction, which could limit OpenTexts operating flexibility and opportunities; (c) OpenTexts inability to complete the anticipated financing as contemplated by the commitment letter prior to the contractually required time for closing of the proposed transaction or otherwise secure favorable terms for such financing; (d) the possibility that certain assumptions with respect to GXS or the proposed transaction could prove to be inaccurate; (e) failure to receive, delays in the receipt of, or unacceptable or burdensome conditions imposed in connection with, all required regulatory approvals and the satisfaction of the closing conditions to the proposed transaction; (f) the potential failure to retain key employees of OpenText or GXS as a result of the proposed transaction or during integration of the businesses; and (g) disruptions resulting from the proposed transaction, making it more difficult to maintain business relationships.
For additional information with respect to risks and other factors which could occur, see the Companys Current Report on Form 8-K filed on November 5, 2013, Annual Report on Form 10-K, including Part I, Item 1A, Risk Factors therein, Quarterly Reports on Form 10-Q, other Current Reports on Form 8-K and other securities filings with the Securities and Exchange Commission (the SEC) (which are available at the SECs website at www.sec.gov) and other securities regulators. Many of these factors are beyond the Companys control. Unless otherwise required by applicable securities laws, the Company disclaims any intention or obligations to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
This communication does not constitute an offer to sell or the solicitation of an offer to buy any securities. The common shares of OpenText will only be issued pursuant to the terms of the Merger Agreement to holders of GXS capital stock that are accredited investors under the U.S. Securities Act of 1933, as amended.
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Note:
(1) All dollar amounts in this press release are in U.S. Dollars unless otherwise indicated.
Further information:
Kasey Holman
Vice President, Corporate Communications
Open Text Corporation
San Francisco: (415) 500-9551
kholman@opentext.com
Greg Secord
Vice President, Investor Relations
Open Text Corporation
San Francisco: (415) 963-0825
New York: (646) 843-5621
gsecord@opentext.com
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