0752 ET - Canadian software company Open Text's noncore divestiture is a positive move as the company refocuses on its main businesses, according to Scotiabank. Open Text agreed to divest a part of its analytics portfolio to NetDocuments for $163 million in cash. In a report, analyst Kevin Krishnaratne says the strategy highlights the software company's move to "grow by shrinking." Krishnaratne says it aligns with a plan of rationalizing its portfolio to concentrate on its core secure information management for AI platform. The analyst thinks there may be one divestiture per quarter, which will strengthen Open Text's balance sheet while allowing management to focus on higher-growth areas. (adriano.marchese@wsj.com)
(END) Dow Jones Newswires
October 03, 2025 07:52 ET (11:52 GMT)
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