Mergers and Acquisitions, Mergers and Acquisitions, Content, Unified communications

OpenText Acquires XMedius for Unified Communications, Enterprise-to-SMB Expansion

OpenText has acquired XMedius, a provider of unified communication, for $75 million in cash -- or less than two times annual revenues. XMedius solutions are deployed in larger enterprises as well as small businesses.

This is M&A deal Number 143 that ChannelE2E has covered so far in 2020. See the complete M&A deal list here.

XMedius solutions, which generate about $40 million in annual revenue, include:

  • XM Fax for fax over Internet;
  • XM SendSecure for file exchanges;
  • XM Connect for multi-vendor unified communications interoperability; and
  • XM TeamQ for small team call centers.

The XMedius portfolio aligns with OpenText’s Customer Experience Management (CEM) and Business Network (BN) platforms, the buyer says. We're also watching for potential synergies with OpenText's Carbonite and Webroot arms -- which offer data protection and cybersecurity software to SMB customers.

OpenTex Acquires XMedius: Executive Perspectives

Craig Stilwell, EVP, SMB, OpenText
OpenText Executive VP Craig Stilwell
Mark Barrenechea, CEO, OpenText

Further explaining the XMedius acquisition, OpenText CEO Mark J. Barrenechea emphasized the company's continued expansion from the enterprise into SMB market segments.

In a prepared statement about the deal, Barrenechea said:

“With more than 50,000 installations worldwide, the acquisition of XMedius further strengthens OpenText’s leadership in secure information exchange, unified communications and digital fax. We welcome XMedius’s customers, strong partner network and employees to OpenText. The acquisition reaffirms our commitment to Montreal, already a strategic hub for our analytics and AI development teams. Together, we will bring leading cloud and hybrid solutions to enterprises and small to mid-sized businesses.”

The deal comes roughly three months after OpenText acquired Carbonite and Webroot for $1.45 billion. That deal extended OpenText into the SMB market with cyber resilience solutions are well-known by MSPs and VARs. Craig Stilwell, executive VP of SMB and Consumer, is leading that cyber resilience effort.

Joe Panettieri

Joe Panettieri is co-founder & editorial director of MSSP Alert and ChannelE2E, the two leading news & analysis sites for managed service providers in the cybersecurity market.