WATERLOO, Ontario, Oct. 2 (UPI) -- Canadian software maker Open Text Corp. is paying about $489 million to buy Hummingbird Ltd., a smaller domestic rival.
The cash-and-debt deal results in the formation of the world's largest independent provider of enterprise content management software, Open Text said Monday.
The deal was financed with about $58 million in cash from Hummingbird, $25 million in cash from Open Text and a $390 million term loan under new $465 million senior secured revolving and term credit facilities. The $75 million committed revolving term credit facility replaces a smaller revolving credit facility that was terminated.
The seven-year term loan may be prepaid and the revolving credit facility has a five-year term.
Hummingbird's chairman, Fred Sorkin and its chief executive, Barry Litwin, have left the combined company.
