IXOS gives Open Text buyout green light

IXOS Software AG has recommended that its shareholders accept the tender offer from fellow Enterprise Content Management software provider Open Text.

Shareholders have from now until January 16, 2004 to accept Open Text's share offer of 9 Euros (AUD$14.86) per share for all issued and outstanding shares of IXOS. Alternatively, IXOS shareholders have the option of turning each of their IXOS shares into 0.5220 of an Open Text common share and 0.1484 of a warrant for each IXOS share, with each whole warrant exercisable to purchase one Open Text common share for up to one year after the closing day of the offer at a price of US$20.75 (AUD$28.34) per share.

In addition to its own funds, Open Text has the backing of the Royal Bank of Canada, which has made a commitment to grant loans up to 123 million Euros (AUD$203.24 million) for the purpose of financing the acquisition.

The Management and Supervisory Boards of IXOS support the offer, with IXOS' largest shareholder, private equity firm General Atlantic Partners (GAP) having already made an "irrevocable undertaking" to accept the offer on the published terms. GAP and its affiliates hold approximately 26 percent of the shares and voting rights in IXOS.

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