Open Text Corp announced that it would be purchasing British software business Micro Focus MFGP, +0.97% for $6 billion,
Open Text Corp. OTEX, +0.08% shares dropped 5% in after-hours trade on Thursday.
In addition to paying 532 pence for each Micro Focus share—roughly double the s
tock's daily closing price on the London Stock Exchange
Following the news, Micro Focus's U.S. ADRs increased by more than 90% in after-hours trading.
Executives from Open Text intend to use $1.3 billion in cash and $4.6 billion in new debt to pay for the transaction
With the help of several acquisitions, Canadian-based Open Text has grown in size recently.
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