M&A · Tech · Services-Computer Processing & Data Preparation
Open Text Corp to acquire ZIX Corp
Announced Nov 8, 2021 · Closed Dec 23, 2021
Deal value$860MEV $651M
Premium—To unaffected price
EV / Adj. EBITDA13.0x2.8x EV / Revenue
ConsiderationAll cash$8.50 per share
Transaction
- Acquirer
- Open Text Corp (OTEX)
- Target
- ZIX Corp
- Buyer type
- Strategic
- Offer price per share
- $8.50
- Enterprise value
- $651M
- Status
- Closed Dec 23, 2021
Deal protections
- Break fee (target pays)
- $19.0M · 2.2%
- Reverse fee (buyer pays)
- —
- Go-shop
- No-shop
- Financing
- —
Advisors
- To the acquirer
- Not disclosed
- To the target
- Citigroup
- Citigroup fee
- $10.0M
Sector context · Tech
- Comparable deals
- 45 in the prior 24 months
- Premium
- Sector median 30.8%
- EV / Adj. EBITDA
- 13.0x vs. 17.7x sector median
- Break fee
- 2.2% vs. 3.0% sector median
Timeline
- AnnouncedNov 8, 2021
- Tender offerNov 22, 2021
- ClosedDec 23, 2021
Valuation · fairness opinions
Discounted cash flow$7.40$10.80
Discounted cash flow$5.80$8.60
Discounted cash flow$4.15$8.10
Discounted cash flow$5.30$9.00
Analyst price targets$10.00$12.00
Offer $8.50
Implied value per ZIX Corp share by analysis, from Citigroup · DCF discount rate 11%–13.2%.