Open Text makes rival bid for Hummingbird
Document management systems supplier Open Text has announced its intention to make an a rival takeover bid for DMS supplier Hummingbird at a price of US$27.75 per share in cash. This is US$1.00 greater than the offer currently on the table for Hummingbird from Symphony Technology Group. It is Open Text's intention to commence the offer by no later than 15th July.
Open Text president & CEO John Shackleton said he believed “this acquisition will benefit the shareholders, customers, partners and employees of both companies. Size and global reach are critical to success in DMS/ECM and the addition of Hummingbird will further solidify Open Text as the leading global ECM player. Hummingbird is a strong strategic fit that adds to our solutions focus and increases the reach of our Global Partner Program. Open Text believes that its offer is at an attractive premium and price to Hummingbird shareholders.”
In connection with its offer, through a combination of shares already owned or secured through lock-up agreements with shareholders, Open Text currently has a 22.3% holding in Hummingbird. Other shareholders of Hummingbird holding approximately 18.2% of the shares have also indicated to Open Text their support for a superior offer to the Symphony offer.