Open Text Growth
September 20, 2010
It is growing time for Open Text. The undisputed largest stand-alone global ECM vendor, which though lacks an attractive organic growth, makes up with its cash flow through its revenue from partnership agreements, merger and acquisitions, besides new products. The Financial Post article “New M&A could help fuel growth at Open Text” exposes that the Waterloo-based tech company reported earnings last month, and the National Bank Financial too forecasts good growth for Open Text, as the demand for ECM solutions accelerates out of the downturn.
The company’s key to success has been the partnership with SAP, Microsoft, which now looks forward to a new partnership with Oracle, and all of these bring 40% of total license revenues for Open Text. Now Open Text is back in the hunt for acquisitions, tagged with an Outperform rating by National Bank Financial that supports the company’s policies and believes they will drive Open Text’s growth.
Harleena Singh, September 20, 2010