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Jul 9, 2019

Google cloud deal sends Canada’s Open Text to record high

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Open Text Corp. rose to a record high Tuesday after the software company said it had expanded a partnership with Google’s cloud division, including integrating its own products with Google’s G Suite brand applications.

Open Text (OTEX.TO) was up 2.5 per cent to $56.11 at 1:24 p.m. in Toronto, its biggest intraday gain since May 8. The Waterloo, Ontario-based company provides enterprise content management software to help its customers manage documents and workflows, among other tasks. Its stock has gained 26 per cent this year.

A number of Open Text’s applications will be made available on Google’s cloud platform, Anthos. Similarly, Google’s G Suite applications such as Drive, Sheets and Hangouts will be integrated with Open Text’s enterprise management software. Open Text will also integrate artificial intelligence and machine-learning capabilities from Alphabet Inc.’s Google into its own software.

“With the partnerships and product integrations announced today, our shared customers can leverage the performance, scalability and security of Google Cloud, while deploying cutting-edge enterprise information management applications from OpenText,” Mark Barrenechea, the Canadian company’s chief executive officer and technology head, said in a statement.