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OpenText acquires forensic security vendor Guidance Software for $240 million

OpenText acquires forensic security vendor Guidance Software for $240 million
From TechCrunch - July 26, 2017

OpenText, the content management company based in Waterloo, Ontario announced today that it was buying Guidance Software, a forensic security and eDiscovery vendor for $240 million.

OpenText agreed to pay Guidance shareholders $7.10 a share. The price will be less Guidances cash on hand of approximately $18 million, making the final price just around $222 million, according to OpenText. Under the terms of the purchase, the company will become a wholly owned subsidiary of OpenText.

OpenText has never been afraid to open its wallet to fill in a hole (or even buy something with overlapping functionality). As a case in point, just about a year ago, it bought Documentum, a competing enterprise content management firm, from EMC for $1.62 billion.

This acquisition gives the company some overlapping functionality too, but Cheryl McKinnon, an analyst with Forrester Research who monitors the content management industry, says it also gives the company forensics tools, which are new to them.

It certainly adds, with some overlap, to their eDiscovery and file analytics portfolio (i.e. , those tools to clean up network drives, detect sensitive text inside documents, etc.). But OpenText has never had anything focused more on the forensic side of the discovery business.that is, more security, deeper inspection of how information [has been] accessed, copied, etc. So that forensics side is net new for them, McKinnon explained.

Not surprisingly, the company is focusing on that forensic piece in its announcement, but its also getting a rich set of eDiscovery tools, and a customer list that includes 78 of the Fortune 100 companies, according to the Guidance website.

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