Open Text Corp. OTEX, +0.08% shares sank 5% in after-hours trading Thursday after the company announced plans to acquire British software company Micro Focus MFGP, +0.97% at a valuation of $6 billion. Open Text said it would pay 532 pence for each share of Micro Focus, roughly double the stock’s closing price on the London Stock Exchange, and assume the company’s debt. Micro Focus’s U.S. ADRs rose more than 90% in after-hours trading following the announcement. Open Text executives plan to finance the transaction with $1.3 billion in cash and $4.6 billion in fresh debt. Open Text, which is based in Canada, has increased in size in recent years through a series of acquisitions, which have included cybersecurity company Carbonite, encryption company Zix and a former Dell Technologies Inc. DELL, +2.75% subsidiary.
