WATERLOO, Ontario, July 21, 2017 /PRNewswire/ -- Open Text
Corporation (NASDAQ:OTEX) (TSX:OTEX) announced today that it
believes its proposal to acquire 100% of the common stock of
Covisint Corporation (NASDAQ: COVS) for $2.45 per share in cash provides Covisint
shareholders with compelling overall value and value
certainty. OpenText noted that the agreed-upon consideration,
which was the result of an active and aggressive negotiation,
reflects significant value to shareholders, as represented by the
offer price's approximate premium of (i) 23% to the closing price
per share of Covisint's common stock on June
2, 2017, (ii) 27% to the volume-weighted average trading
price per share of Covisint's common stock for the 30-day period
ending on June 2, 2017, and (iii) 46%
to the cash-adjusted price per share of Covisint's common stock for
the 30-day period ending on June 2,
2017.(1)
Given the lengthy exploration of strategic alternatives that
Covisint undertook (as described in Covisint's proxy materials) and
the attractive premium and valuation reflected in OpenText's offer,
OpenText believes a rejection of the offer exposes Covisint
shareholders to significant market valuation risk and diminished
liquidity. OpenText remains fully committed to closing a
Covisint transaction, which is in the best interests of both
companies' shareholders, but does not intend to increase the
consideration offered to Covisint shareholders.
About OpenText
OpenText enables the digital world, creating a better way for
organizations to work with information, on premises or in the
cloud. For more information about OpenText (NASDAQ: OTEX, TSX:
OTEX) visit www.opentext.com.
Cautionary Statement Regarding Forward-Looking
Statements Certain statements in this press release,
including statements regarding OpenText's plans, objectives,
expectations and intentions relating to the acquisition, the
closing of the acquisition, as well as the expected benefits of the
acquisition, may contain words considered forward-looking
statements or information under applicable securities laws. These
statements are based on OpenText's current expectations, estimates,
forecasts and projections about the operating environment,
economies and markets in which the company operates. These
statements are subject to important assumptions, risks and
uncertainties that are difficult to predict, and the actual outcome
may be materially different. OpenText's assumptions, although
considered reasonable by the company at the date of this press
release, may prove to be inaccurate and consequently its actual
results could differ materially from the expectations set out
herein. For additional information with respect to risks and other
factors, which could occur, see OpenText's Annual Report on Form
10-K, Quarterly Reports on Form 10-Q and other securities filings
with the SEC and other securities regulators. Unless
otherwise required by applicable securities laws, OpenText
disclaims any intention or obligations to update or revise any
forward-looking statements, whether as a result of new information,
future events or otherwise.
Copyright ©2017 OpenText. OpenText is a trademark or registered
trademark of OpenText. The list of trademarks is not exhaustive of
other trademarks. Registered trademarks, product names, company
names, brands and service names mentioned herein are property of
OpenText. All rights reserved. For more information, visit:
http://www.opentext.com/who-we-are/copyright-information.
OTEX-MNA
Notes: (1) All dollar amounts
in this press release are in US dollars unless otherwise
indicated.
For more information, please contact:
Greg Secord
Vice President, Investor Relations
Open Text Corporation
415-963-0825
investors@opentext.com
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SOURCE Open Text Corporation