OpenText to acquire Guidance Software for $240M

OpenText (TSX/NASDAQ: OTEX) has agreed to acquire Guidance Software (NASDAQ: GUID) for US $7.10 per share in cash, for a total equity value of approximately US $240 million, less Guidance Software’s cash, for an enterprise value of approximately US $222 million.

Pasadena, California based Guidance Software is the Makers of EnCase®, the gold standard in digital investigations and endpoint data security. Guidance provides a mission-critical foundation of applications that have been deployed on an estimated 34 million endpoints and work in concert with other leading enterprise technologies from companies such as Cisco, Intel, Box, Dropbox, Blue Coat Systems, and LogRhythm.

The acquisition of Guidance is expected to complement the OpenText Discovery portfolio of software and services that provide search, extraction, classification, review and analysis of information, and to broaden OpenText Information Security capabilities through the addition of digital investigation, forensic security, and endpoint solutions.

OpenText intends to commence the tender offer for all of the shares of common stock of Guidance Software within 10 business days. Pursuant to the agreement, the tender offer will be followed by a merger to acquire any untendered shares. The tender offer is subject to the tender of a majority of Guidance Software’s shares and certain other customary closing conditions. The transaction is expected to close in the third quarter of calendar 2017.

photo credit: Guidance Software

Ted Liu

Ted Liu, M.Sc. (Mining, Queen's), MBA (Finance, Toronto), is the Editor of Private Capital Journal, CanadaMetals.ca, TechWire.ca, and the former Editor of Canadian Private Equity. Ted has been passionately tracking Canadian private capital industry since 1992, having most recently served as Research Director for The Canadian Venture Capital and Private Equity Association (CVCA).

Ted is the architect of CVCA infobase, and is the architect of CPE Media's Financings.ca, Canada's most sophisticated and advanced all private capital and public market financing database.