OpenText (OTEX) Sells eDOCS to Focus on Core AI Solutions and Strategic Growth
- OpenText divests eDOCS to NetDocuments for $163 million, focusing on core AI solutions and secure information management.
- The divestiture aims to enhance shareholder value and align with OpenText's strategic direction for future revenue growth.
- OpenText continues to strengthen its AI capabilities, ensuring position in secure information management and leveraging emerging technologies.
OpenText Divests eDOCS to Focus on Core AI Solutions
OpenText Corporation announces a significant strategic move by divesting its on-premise solution, eDOCS, from its Analytics portfolio to NetDocuments for $163 million. This decision, effective October 2, 2025, reflects OpenText's commitment to streamline its operations by focusing on its core offerings in secure information management and artificial intelligence. The eDOCS solution, which automates various tasks for legal professionals, has generated approximately $30 million in annual revenue in the fiscal year ending June 30, 2025. By shedding this non-core asset, OpenText aims to enhance shareholder value and reinforce its strategic direction.
The divestiture aligns with OpenText's capital allocation framework, as articulated by Executive Chairman Tom Jenkins. He stresses that the move is not merely a financial transaction but a strategic realignment intended to bolster future revenue growth. The decision to sell eDOCS indicates a shift in focus towards areas that promise more significant returns on investment, particularly in the rapidly evolving AI sector. This strategic pivot emphasizes OpenText's ongoing commitment to innovation and leadership in secure information management, ensuring that resources are concentrated where they can yield the most impactful results.
Interim CEO James McGourlay expresses appreciation for the support of teams, customers, and partners during this transition. He assures stakeholders that NetDocuments will serve as a capable partner for eDOCS users, facilitating a seamless handover. The transaction, which includes the software, customer contracts, associated services, and employees, is expected to close by early 2026, pending the necessary approvals. Goldman Sachs & Co. LLC acts as OpenText’s financial advisor in this significant divestiture, further highlighting the company's strategic foresight in navigating its business landscape.
In a related development, OpenText continues to enhance its AI capabilities, signaling its intent to remain at the forefront of the secure information management industry. As the market evolves, the company’s focus on core strengths ensures that it is well-positioned to leverage emerging technologies and meet the shifting demands of its clientele. The divestiture of eDOCS marks a pivotal step in this ongoing journey, reinforcing OpenText's strategic vision for sustainable growth and innovation.
For further information on OpenText and its evolving services, interested parties can visit their website at https://www.opentext.com.