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OPEN TEXT CORP. Waterloo, Ontario; Software Firm Buys Into Acquisition Strategy.(THE NEW AMERICA)

Investor's Business Daily

| March 02, 2004 | COPYRIGHT 2004 Investor's Business Daily, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan.  All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)Copyright

Byline: MARILYN MUCH

Organic growth is all well and good. But sometimes there's nothing like an old-fashioned buyout to build a company's prowess.

Tom Jenkins can tell you all about it. He's chief executive of Open Text Corp., which makes enterprise content management and collaboration software designed to help big organizations manage online documents.

As the field has consolidated, Open Text has made acquisitions to expand its offerings and geographical presence. The firm has closed on four big deals since November 2002.

In October, it paid $11 million for Germany's Gauss Interprise. Gauss is one of Europe's top developers of Web content management software.

And last month, Open Text bought a majority stake in Germany's IXOS Software AG in a tender offer valued at $250 million. Jenkins expects his firm to own 100% of the company within the year.

"The IXOS acquisition makes Open Text the largest enterprise content management software vendor in Europe . . . and the largest pure-play ECM software vendor in the world," said analyst Bradley Whitt of Southwest Securities Inc.

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