OpenText has sold its eDOCS legal automation unit to NetDocuments for US$163 million in cash. The Waterloo-based software firm, which earned US$5.2 billion in revenue last fiscal year, said proceeds will go toward debt reduction. eDOCS contributed only about US$30 million in sales—0.6 per cent of OpenText’s total.
The divestiture marks the company’s first move since launching a strategic review after CEO Mark Barrenechea’s ouster in August. Analysts at CIBC Capital Markets predict OpenText could sell assets representing up to 20 per cent of revenue. Shares rose slightly Friday, climbing 1.1 per cent in Nasdaq trading.
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