Activist investor to oppose OpenText's $103M acquisition of Covisint
July 20, 2017
Internet Software | Southfield, MI | Corporate Acquisition
Dialectic Capital Management has announced its intent to vote against the acquisition of Covisint by OpenText in a $103 million transaction that was announced June 5. In a letter to Covisint shareholders, the hedge fund called OpenText's offer of $2.45 per share "completely inadequate," citing Evercore's analysis of the deal. Dialectic Capital has accumulated a 7.7% stake in Covisint, a provider of cloud-based IoT and identity management services. OpenText's offer represents a 23% premium to Covisint's closing price on the last trading day before the companies announced the combination.