Rocket Software’s Acquisition of OpenText’s Application Modernization and Connectivity Business Strengthens Hybrid Cloud Posture

At the core of many IT and mainframe modernization projects is the need to balance the benefits of mainframe systems with the burgeoning capabilities that come with the cloud through hybrid cloud strategies. Capturing the best of both worlds presents a unique set of challenges, but it’s something that nearly every IT leader can agree is worth it. In fact, a Rocket Software survey found that an overwhelming 93% of IT leaders believe hybrid cloud is the future of IT.

It's a landscape that Rocket Software has long understood and recognized its importance. As the partner solving complex IT challenges across infrastructure, data, and applications for some of the world’s largest organizations, Rocket Software’s hybrid cloud solutions and capabilities meet customers no matter where they are in their modernization journey.

To further strengthen those capabilities, we have signed a definitive agreement to acquire the Application Modernization and Connectivity business (AMC) of OpenText, formerly Micro Focus. The company has long been a leader in application modernization, offering its customers industry-leading tools including COBOL and host connectivity.

Bringing AMC into the fold as part of Rocket Software’s growing portfolio will represent a tremendous opportunity for growth and innovation in the hybrid cloud space. After we close the transaction, our customers will have access to an expanded solution set and all the tools they need to maximize their existing technology investments while simultaneously reaping the benefits that come from cloud-based innovation.

Helping our customers achieve modernization without disruption to business operations is at the center of everything we do. And now, as we welcome AMC into Rocket Software, the combined resources, tools, and capabilities of our two organizations are poised to help meet mission-critical objectives. As we look toward the future, here are five key objectives that this acquisition will enable us to reach:

• Meet organizations at any stage of the modernization journey – With a comprehensive product portfolio addressing all use cases, spanning from mainframe to hybrid workloads, this acquisition means we will allow Rocket Software to be more equipped than ever to help businesses modernize without disruption, no matter their circumstances.
• Enable customers to derive value from investment in core applications – Customers will be able to maintain the benefits of long-running systems while still gaining the ability to innovate and take full advantage of new applications and technologies.
• Solidify Rocket Software as a leader in hybrid cloud – Bringing AMC into the Rocket Software portfolio will help deepen current customer relationships while also ensuring sustainable growth in the legacy enterprise IT market, enabling Rocket Software to guide customers through their entire modernization journey. 
• Extend Rocket Software’s industry-leading R&D expertise – The addition of AMC will enable Rocket Software to focus on continuous innovation through the application and use of emerging technologies like generative AI.
• Cement Rocket Software as the partner of choice – Combining the capabilities and expertise of AMC with Rocket Software’s existing capabilities will serve to meet industry and customer needs and improve outcomes for long-term success.

Hybrid cloud strategies are no longer a nice-to-have—they are the standard for businesses looking to maximize the benefits of on-prem and cloud. Bringing in a well-established and respected brand like AMC will open up a world of possibilities and ensure Rocket Software customers have access to tools that are ready to support them no matter where they are in the modernization process.

This acquisition is pending regulatory approval and customary closing conditions and expects to close in Q2 2024. Learn more about how this addition of AMC will help better guide our customers through every phase of their modernization journey.