WATERLOO, ONT.—Business software company OpenText Corp. says it has signed a deal to buy Dell EMC's enterprise content division for $1.62 billion (U.S.).
Under terms of the agreement, the software, associated services, and employees in the division would be integrated into OpenText.
OpenText says the deal boosts its enterprise information management business.
"This acquisition further strengthens OpenText as a leader in enterprise information management, enabling customers to capture their digital future and transform into information-based businesses," OpenText CEO Mark Barrenechea said in a statement Monday.
The company has been growing its cloud services business as more companies move their information online.
The acquisition includes Dell EMC's Documentum, InfoArchive, and Leap products.
"In determining the best long-term future for ECD, we wanted to create a business with a leading position in enterprise information management," Dell EMC president David Goulden said.
The deal follows the completion of Dell's merger with EMC to create Dell Technologies.
The price paid by OpenText is 2.7 times the division's revenue of $599 million (U.S.) in its 2015 financial year.
The deal is expected to close within 90 to 120 days and is subject to regulatory approval and customary closing conditions.
The companies also say they plan to negotiate a strategic commercial partnership to expand customer offerings.