Open Text Corporation · TSX:OTEX
Open Text — Merger or Acquisition (November 2021)
16 slides from Open Text's merger presentation, Nov 8, 2021
Slide 1: OpenText to Acquire Zix Corporation (NASDAQ: ZIXI)
OpenText to Acquire Zix Corporation (NASDAQ: ZIXI) NASDAQ: OTEX | TSX: OTEX November 8, 2021
Slide 2: Cautionary Statement
Cautionary Statement Certain statements in this presentation, including statements regarding OpenText’s plans, objectives, expectations and intentions relating to the acquisition, the acquisition’s expected contribution to OpenText’s results, financing and closing of the acquisition, as well as the
Slide 3: Call Participants
Call Participants Mark J. Barrenechea Madhu Ranganathan CEO and CTO EVP, CFO OpenText ©2021 All rights reserved 3
Slide 4: Transaction Overview
Transaction Overview Purchase Price and Closing Conditions Projected Financial Impact • Approximately $860 million, inclusive of Zix’s cash and debt • Additive to organic growth, ARR and cloud revenue • Approximately 3.5x TTM Zix GAAP revenues(1) • Accretive to A-EBITDA and FCF • To be funded with O
Slide 5: Zix Snapshot
Zix Snapshot(1) Zix’s Mission: To be THE leading provider of cloud-based email security, compliance and productivity solutions $235.6M 15% 89% 100% 23% TTM Revenue(2) TTM y/y Revenue Growth Cloud(2) Subscription Revenue(2) A-EBITDA Margin(2) (as of June 30, 2021) 1 of 9 100,000+ Dallas, TX 525 Autho
Slide 6: Powerful Industry Trends
Powerful Industry Trends “These mounting cybersecurity threats are particularly fraught for small and medium-size enterprises (SMEs), defined as those with fewer than 500 employees.” McKinsey & Company(1) SMBs represent a huge growth SMBs are vulnerable to cyber $10B(1) Market Opportunity opportunit
Slide 7: Strategic Rationale
Strategic Rationale Grows OpenText share of Information Meaningful expansion of our MSP Management (IM) Market distribution capabilities Strengthens relationship with Enhances SMB portfolio in email, Microsoft – Zix is a top 5 threat protection and compliance Microsoft Managed Cloud Solution Provide
Slide 8: Zix Track Record of Growth
Zix Track Record of Growth(1) World-Class SaaS Platform and Service 2016 to 2021 ARR Encrypted Security Around the Mailbox High-growth, cloud MSP Focus and International Market Expansion subscription-based, $55M to Threat Intelligence for Enhanced Customer Protection recurring revenue model Security
Slide 9: Zix Expands OpenText Distribution Capabilities
Zix Expands OpenText Distribution Capabilities Significant cross-sell and upsell opportunities Zix MSP Partners(1) 5,644 5,003 4,734 4,459 Zix OpenText 3,849 ~21,600(2) ~5,600 ~17,000 Distinct MSPs MSPs MSPs 2017 2018 2019 2020 2021 1. Source: Zix Investor Presentation, August 2021 and Zix Financial
Slide 10: Zix Enhances OpenText SMB Offering
Zix Enhances OpenText SMB Offering(1) All Zix products are delivered through the Zix Secure Cloud Platform Zix Products Fit with Product Zix OpenText SMB Platform OT Key Benefits Email Net new Encryption Increases opportunity to engage customer at Email Adds expertise on email BrightCloud time of M3
Slide 11: Microsoft Partnership Drives Strong Growth Synergies
Microsoft Partnership Drives Strong Growth Synergies(1) ~20-year as Microsoft Managed CSP Reselling M365 is a strong complement to Zix’s proprietary products >14,000 successful M365 migrations > 90,000 joint customers 97% first call resolution on M365 support calls Phenomenal Support for M365 Quick,
Slide 12: Adds Talented Employees in SMB and Cyber Security
Adds Talented Employees in SMB and Cyber Security OpenText ©2021 All rights reserved 12
Slide 13: Key SMB Growth Areas
Key SMB Growth Areas New product Cross-sell Deeper Geographic More innovations relationship expansion strategic with Microsoft partnerships OpenText ©2021 All rights reserved 13
Slide 14: Zix meets our Acquisition Criteria
Zix meets our Acquisition Criteria Key M&A Strategy Drivers High adjacency within Information Management Expands market presence, customer base, technology position Contributes to organic growth On operating model in 12 -18 months Free Cash Flows, cash returns-based OpenText ©2021 All rights reserve
Slide 15: Additional Information
Additional Information The tender offer described in this communication has not yet commenced. This communication is provided for informational purposes only and does not constitute an offer to purchase or the solicitation of an offer to sell any securities. At the time the tender offer is commenced
Slide 16: Thank you
Thank you twitter.com/opentext linkedin.com/company/opentext opentext.com