NEW YORK (AP) -- The software company Open Text is buying cloud-technology provider GXS Group in a cash-and-stock deal valued at approximately $1.17 billion.
Open Text, based in Waterloo, Ontario, will pay about $1.07 billion in cash and $100 million of its stock. When the deal closes, part of the cash portion of the purchase price will be used to repay some GXS debt.
GXS stockholders are expected to own about 2.1 percent to 2.4 percent of Open Text's stock once the acquisition is complete.
The companies expect to serve more than 80,000 customers once the transaction closes.
GXS Group Inc., a business-to-business service provider, a will become a subsidiary of Open Text Corp.
The deal is expected to close within 90 days.