OpenText announces $75 million XMedius acquisition

Secure information exchange specialist OpenText has announced the $75 million acquisition of XMedius, a provider of secure information exchange and unified communications systems.

The purchase adds decades of experience and patented technologies to transform secure and collaborative communication, the company noted, which will enable organisations to move more workloads to the cloud and “unlock the information advantage”.

XMedius also provides products to optimise omnichannel customer experience and connected business and OpenText said these will complement its own Customer Experience Management (CEM) and Business Network (BN) platforms.

“With more than 50,000 installations worldwide, the acquisition of XMedius further strengthens OpenText’s leadership in secure information exchange, unified communications and digital fax,” commented Mark J. Barrenechea, CEO and CTO at OpenText.

Headquartered in Montreal, XMedius serves SMBs, enterprises and service providers across markets such as healthcare, government, education, finance, legal hospitality and more. With a user-base of over 20 million and 50,000 installations around the globe, the firm generates approximately $40 million in annual revenue.

Post-acquisition, however, OpenText said it expects first year revenues to be down, up to 20% due to customary purchase price accounting adjustments and typical integration activities. XMedius is not expected to contribute significant revenue to OpenText’s results for the third fiscal quarter ending 31 March 2020, it added.

“We welcome XMedius’ customers, strong partner network and employees to OpenText,” Barrenechea added. “The acquisition reaffirms our commitment to Montreal, already a strategic hub for our analytics and AI development teams.

“Together, we will bring leading cloud and hybrid solutions to enterprises and small to mid-sized businesses.”