Rocket Software, a provider of hybrid cloud solutions for mission-critical applications, has agreed to buy the Application Modernization and Connectivity (AMC) business of OpenText for $2.275 billion.
AMC is a leader in application modernization tools, including COBOL and host connectivity. The deal will expand Rocket Software’s modernization portfolio and enable customers to run their core applications on any platform.
The transaction is expected to close by June 30, 2024, subject to regulatory approvals and other conditions. Rocket Software will fund the acquisition with a mix of cash, debt, and new capital from its shareholders. Several banks are acting as financial advisors and debt providers to Rocket Software.
Application Modernization and Connectivity (AMC) has been a leader in application modernization for many years, providing industry-leading tools including COBOL and host connectivity. These tools allow organizations to leverage their core applications and offer flexibility for modernization, allowing them to run applications wherever they choose.
With AMC, Rocket Software will have a more diverse modernization portfolio that aligns with customer demands, whether on-premises or through a hybrid cloud strategy.
“We are proud to be the partner of choice dedicated to satisfying our customers at any point in their modernization journeys and minimizing unnecessary risk to their business operations,” said Milan Shetti, president and CEO of Rocket Software.
For the many enterprise organizations that are mainframe-based and ready to take advantage of the opportunities offered by the hybrid cloud, the reality demands continuity with solutions and expertise that span both worlds. Welcoming Rocket Software to the AMC business and its talented team marks an extraordinary moment for the company, the market and the thousands of organizations that share our vision of realizing the best of both worlds.”
RBC Capital Markets, LLC, Barclays Capital Inc, Deutsche Bank Securities Inc, and UBS Securities LLC are acting as financial advisors to Rocket Software. Ernst & Young LLP acted as accounting advisor to Rocket Software. Kirkland & Ellis LLP acted as general counsel to Rocket Software. Debt financing for the transaction will be provided by RBC Capital Markets, Barclays Capital, Deutsche Bank Securities, UBS Securities, Citigroup Global Markets, HSBC Securities, Mizuho Securities and SMBC Nikko Securities.
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