Open Text to Acquire GXS Summary

The following is excerpted from the question-and-answer section of the transcript.

Question: Scott Penner - TD Newcrest - Analyst : Yes, thanks, Mark. Just wondering whether you can comment at all just on the sources of synergy for the transaction. It looks like you've acquired basically a pretty stable business with a good customer base that's been there for a number of years in many cases. Is the goal here over the next years to sell OpenText software into this base? I'm just sort of wondering what you can provide on that.

Question: Scott Penner - TD Newcrest - Analyst : Okay, thanks. I'm sure you have a lot of questions. I will pass it off. without the prior written consent of Thomson Reuters. 'Thomson Reuters' and the Thomson Reuters logo are registered trademarks of Thomson Reuters and its affiliated companies. NOVEMBER 05, 2013 / 1:30PM, OTEX.TO - Open Text to Acquire GXS

Question: Paul Steep - Scotiabank - Analyst : Good morning. Mark, maybe you can just comment -- my rough math here be that now roughly 36% of the revenue if I'm not wrong look more transactional in nature. Can you maybe talk about where this shifts or how this sort of positions OpenText to more significantly play within customers? And how heavy is the weighting now to maybe more logistics or trade finance just in terms of what the new OpenText looks like? Thanks.

Question: Paul Steep - Scotiabank - Analyst : Just one clarification before I pass it along that I think is important. On the recurring side, Mark, is the tie in more based on any firm contracts with customers or is it more you are so deeply integrated that those customers are basically tied in? Thanks.

Question: Paul Steep - Scotiabank - Analyst : Thank you.

Question: Kris Thompson - National Bank Financial - Analyst : Great, thanks. Mark, who are the main competitors? Does SAP play in the space and how is that going to impact your relationship with SAP?

Question: Kris Thompson - National Bank Financial - Analyst : Okay just the last one from me. Maybe Paul, for your assumptions for getting neutral or slightly accretive in 2014, what should we use for interest rate, maybe 3% and income tax rate so we can model that out?

Question: Kris Thompson - National Bank Financial - Analyst : Okay, fair enough. Good luck, guys. Thanks.

Question: Thanos Moschopoulos - BMO Capital Markets - Analyst : Good morning and congratulations on the acquisition. Paul, maybe a follow-up to the last question. When you talk about bringing the asset up to OpenText targeted model, do you mean from a both an EBITDA and a net margin perspective?

Question: Thanos Moschopoulos - BMO Capital Markets - Analyst : Okay. Although this seems like it was already a very profitable business so it would seem like there's probably not a lot you need to do there necessarily.

Question: Thanos Moschopoulos - BMO Capital Markets - Analyst : Okay. It looks like the revenue base has been very stable and so should it be safe for us to assume that that stability should remain the case over the next year rather than a typical decline you would typically see following an acquisition?

Question: Thanos Moschopoulos - BMO Capital Markets - Analyst : Okay and just one last one from me. Mark, can you comment on the go to market? Was this primarily a direct sale? Was it a channel sale? And then under OpenText, will you have an overlay salesforce or will that be primarily through your existing salesforce channels? Thanks.

Question: Thanos Moschopoulos - BMO Capital Markets - Analyst : Great, thanks and congratulations once again.

Question: Paul Treiber - RBC Capital Markets - Analyst : Thanks very much. With GSX and EasyLink, it sounds like you'll be the largest provider in the B2B transaction space above IBM. Are there any antitrust ramifications?

Question: Paul Treiber - RBC Capital Markets - Analyst : Okay and what's the degree of customer overlap between GSX and EasyLink and then do you anticipate any negative revenue synergies?

Question: Paul Treiber - RBC Capital Markets - Analyst : Thank you, that's helpful. Just one last one. Should we expect or is it reasonable to expect GSX to be brought into Red Oxygen in

Question: Paul Treiber - RBC Capital Markets - Analyst : Thank you, I'll pass the line.

Question: Steven Li - Raymond James & Associates - Analyst : Thank you. A few questions from me. Paul, on the onboarding, given they are already running at about high 20%s EBITDA margin, why will it take two years to onboard to your model or am I missing something here?

Question: Steven Li - Raymond James & Associates - Analyst : Okay, that's great. And Paul, on the stable revenues, I haven't been able to find any, but do you know if there was an acquisition by GSX in the last 12 to 18 months?

Question: Steven Li - Raymond James & Associates - Analyst : I thought Inovis was 2011.

Question: Steven Li - Raymond James & Associates - Analyst : Okay, thanks. And then one last one from me. How much cash and debt will you have post the transaction?

Question: Steven Li - Raymond James & Associates - Analyst : Did you say the cost of the new debt how much it was, Paul? without the prior written consent of Thomson Reuters. 'Thomson Reuters' and the Thomson Reuters logo are registered trademarks of Thomson Reuters and its affiliated companies. NOVEMBER 05, 2013 / 1:30PM, OTEX.TO - Open Text to Acquire GXS

Question: Steven Li - Raymond James & Associates - Analyst : Okay, great and then one last one before I pass the line. How would you break down their revenues transaction PS and license percentage?

Question: Steven Li - Raymond James & Associates - Analyst : Okay, great. Thanks, guys.

Question: Richard Tse - Cormark Securities - Analyst : Thank you. Congratulations on this deal here.

Question: Richard Tse - Cormark Securities - Analyst : Can you give some context in terms of how this whole transaction came about? Were they being shopped around? Did you pursue them? Maybe a bit of context there.

Question: Richard Tse - Cormark Securities - Analyst : And then I'm not terribly familiar with the markets that they operate all together. Obviously there are very many different markets but could you give us a sense of what their share would be either in whole or each of the segments? And then who the next two competitors behind them would be?

Question: Richard Tse - Cormark Securities - Analyst : That's great, thank you very much.