OpenText’s Acquisition of Zix Corporation

Cleary Gottlieb Steen & Hamilton represented OpenText in the transaction while Baker Botts advised Zix Corporation.

OpenText™ (NASDAQ: OTEX), (TSX: OTEX) has entered into a definitive agreement to acquire Zix Corporation, Inc. (NASDAQ: ZIXI) (“Zix”), a leader in SaaS-based email encryption, threat protection and compliance cloud solutions for Small and Medium-sized Businesses, for a total purchase price of approximately $860 million, inclusive of Zix’s cash and debt.

OpenText, through a wholly owned subsidiary, will commence a tender offer for all outstanding Zix common stock (including shares of common stock issued upon conversion of Zix’s Series A Preferred Stock) shares for $8.50 per share in cash. Pursuant to the merger agreement, the tender offer will be followed by a merger to acquire any untendered shares. The tender offer is subject to the tender of at least one share more than two-thirds of all of the issued and outstanding common shares of Zix and certain other regulatory approvals and customary closing conditions. The transaction is expected to close within the next 90 days.

OpenText, The Information Company™, enables organizations to gain insight through market leading information management solutions, powered by OpenText Cloud Editions.

The Cleary M&A team was led by partners Jim Langston (Picture) and Aaron Meyers and associates Nickolas Bogdanovich, Jamal Lama, Andrew Wood, and Philip Voron. Partner Amy Shapiro and associate Daniel Binette advised on finance matters. Partner Craig Brod and associates Jeff Shim and Selene Park, and law clerk Yuan He provided capital markets advice. Partner Dan Culley advised on antitrust matters. Partner-elect Chase Kaniecki and associate Pete Young advised on CFIUS and foreign direct investment issues. Counsel JJ Gifford and associate Samuel Kramer provided tax advice. Partner Daniel Ilan, associate Jaehwan Park, and law clerk Guilia De Bosio advised on IP matters. Partner Audry Casusol, associate Suzannah Golick, and law clerk Amy Garland provided executive compensation and employee benefits advice. 

The Baker Botts team included: Don McDermett (Partner, Dallas), Grant Everett (Partner, Dallas), Justin Hoffman (Partner, Houston), Rusty Shellhorn (Associate, Dallas), Trevor Borg (Associate, Dallas), Will Brown (Associate, Dallas); Steve Marcus (Partner, Dallas), Snow Rui (Associate, Dallas); David Schiller (Special Counsel, Dallas); Paul Cuomo (Partner, Washington, D.C.), Mike Bodosky (Special Counsel, Washington, D.C.), David Cardwell (Partner, Brussels), Christine Ryu-Naya (Special Counsel, Washington, D.C.); Paul Luther (Partner, Washington, D.C.); Steve Mann (Partner, Dallas); Luke Pedersen (Partner, Washington, D.C.); Jennifer Trulock (Partner, Dallas); Luke Weedon (Partner, Dallas), Josh Espinosa (Associate, Dallas); Harrison Reback (Senior Associate, Houston).

Involved fees earner: Michael Bodosky – Baker Botts LLP; Trevor Borg – Baker Botts LLP; David Cardwell – Baker Botts LLP; Paul Cuomo – Baker Botts LLP; David Schiller – Baker Botts LLP; Josh Espinosa – Baker Botts LLP; Grant Everett – Baker Botts LLP; Justin Hoffman – Baker Botts LLP; Paul Luther – Baker Botts LLP; Steve Mann – Baker Botts LLP; Stephen Marcus – Baker Botts LLP; Don McDermett – Baker Botts LLP; Luke Pedersen – Baker Botts LLP; Harrison Reback – Baker Botts LLP; Christine Ryu-Naya – Baker Botts LLP; Rusty Shellhorn – Baker Botts LLP; Jennifer Trulock – Baker Botts LLP; Luke Weedon – Baker Botts LLP; Snow Xue Rui – Baker Botts LLP; Daniel Binette – Cleary Gottlieb Steen & Hamilton; Nickolas Bogdanovich – Cleary Gottlieb Steen & Hamilton; Craig Brod – Cleary Gottlieb Steen & Hamilton; Audry Casusol – Cleary Gottlieb Steen & Hamilton; Daniel Culley – Cleary Gottlieb Steen & Hamilton; Jonathan Gifford – Cleary Gottlieb Steen & Hamilton; Suzannah Golick – Cleary Gottlieb Steen & Hamilton; Daniel Ilan – Cleary Gottlieb Steen & Hamilton; Chase Kaniecki – Cleary Gottlieb Steen & Hamilton; Samuel Kramer – Cleary Gottlieb Steen & Hamilton; Jamal Lama – Cleary Gottlieb Steen & Hamilton; James Langston – Cleary Gottlieb Steen & Hamilton; Aaron Meyers – Cleary Gottlieb Steen & Hamilton; Selene Park – Cleary Gottlieb Steen & Hamilton; Jaehwan Park – Cleary Gottlieb Steen & Hamilton; Amy Shapiro – Cleary Gottlieb Steen & Hamilton; Jeff Shim – Cleary Gottlieb Steen & Hamilton; Philip Voron – Cleary Gottlieb Steen & Hamilton; Andrew Wood – Cleary Gottlieb Steen & Hamilton; Pete Young – Cleary Gottlieb Steen & Hamilton;

Law Firms: Baker Botts LLP; Cleary Gottlieb Steen & Hamilton;

Clients: OpenText; Zix Corp;