Hyland Software Inc., a U.S.-based developer of content services platform (CSP) software, is acquiring Alfresco Software. The company expects to fund the acquisition with an incremental $663 million first-lien term loan and $13 million of cash, which will cause its pro forma adjusted leverage to increase to about 8.3x as of June 30, 2020. We are affirming all of our ratings on Hyland Software Inc., including our 'B-' issuer credit rating. The stable outlook reflects our expectation that the company's cost-cutting efforts will lead to an improvement in its EBITDA margins following the initial contraction and reduce its leverage toward the low- to mid-7x range by the end of 2021. The affirmation reflects our expectation that Hyland's debt-funded acquisition of
