TORONTO (Reuters) - Canadian business software maker Open Text beat analyst expectations for profit and revenue on Wednesday as its licensing sales rebounded, and said it would buy smaller company Metastorm.
Open Text’s adjusted net income jumped 41 percent to $70.5 million, or $1.21 a share, on revenue of $267.5 million in its second quarter, ended December 31, the company said in a statement.
Analysts, on average, had expected Open Text to earn $1.07 per share on an adjusted basis, on revenue of $254.4 million, according to Thomson Reuters I/B/E/S.
The Waterloo, Ontario-based company, which runs corporate process systems, also said it planned to pay $182 million in cash to acquire smaller business software company Metastorm.
Open Text has the second-largest share of the market for enterprise content management (ECM) systems after IBM Corp and partners with tech infrastructure vendors SAP AG, Microsoft Corp and Oracle Corp.
Reporting by Alastair Sharp; editing by Rob Wilson