New Delhi: Rocket Software, Inc., has signed an agreement for acquiring OpenText’s Application Modernization and Connectivity business (AMC) which was under Micro Focus. The AMC was acquired for $2.275 billion by Rocket Software.
AMC, which is well known for application modernization tools and host connectivity helps in using core applications effectively, streamline their migration, run their apps wherever they want to. The acquisition of AMC by Rocket Software will help in improving their apps modernization portfolio which will align with their unique customers’ demands.
Milan Shetti, CEO of Rocket Software said on this acquisition, “Welcoming the AMC business and its talented team to Rocket Software marks an extraordinary moment for the company, the market, and the thousands of organizations who share in our vision of making the best of both worlds a reality.”
This acquisition will be funded via cash equity, debt financing, existing cash reserves, etc. This deal currently awaits all the regulatory approvals and is expected to be completed in the second quarter of 2024.
The acquisition will accomplish multiple strategic objectives for Rocket Software including providing a comprehensive product portfolio catering to app modernization for hybrid workloads. Next, it will help in establishing Rocket Software as a leader in hybrid cloud services. Moreover, it will also make Rocket Software’s position as the recommended partner for industrial and customer’s needs.
Through this acquisition, the company will not only meet customers’ demands but will also help them modernize their applications over time. This will help to increase the customer retention rate and increase opportunities for cross-selling.