When will the first one be announced and what will it be
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@123 The four Enterprise Cyber solutions could all be sold off individually. There’s next to zero technical overlap.
All four are dying on their feet thanks to MB, so the time is right to jettison them while they still have a level of commercial value.
A simple right to use clause would satisfy OT’s internal usage and not get in the way of an external bid.
SMBC Cyber Is next
We have a reputation of being a "graveyard" for software companies. We were all about scooping up older software firms (Micro Focus, Documentum, etc), slashing costs (which usually means layoffs), and hiking up maintenance fees for customers who feel stuck and can’t just jump ship.
Investors usually eat this up because it brings in the cash. But for customers and employees? Not so much. They see it as pretty "hostile" or "extractive," since it’s all about squeezing out profits from old stuff instead of actually coming up with new, cool innovations.
The gig is up. Show’s over.
It is no mystery. It has already been announced by the board and reported by analysts: ADM (legacy MF business unit): Analytics; Small Businesses Cyber. All divestitures will be completed half way through calendar year 2027, per Tom Jenkins.
@d9 So, industry analysts are saying the SMB Cybersecurity unit is a prime target for Private Equity (PE) firms. Why? Well, PE guys are all about those businesses with steady cash flow, like backup services (think Carbonite) and antivirus stuff (like Webroot). They love to cut costs, rake in the cash, and don’t really sweat the "AI synergy" stuff like public tech companies do.
Now, about the valuation. If OpenText wants to tackle that Micro Focus debt fast (which is a big deal for the Board), selling this unit could bring in a cool $1B to $1.5B in one go.
What’s Going on (What MSPs are saying)
If you check out the MSP forums (like Reddit's r/msp), you’ll see a lot of chatter that backs up the idea of selling:
- Stagnant Innovation: Partners are often grumbling that since the acquisition, there hasn’t been much new or exciting in product features.
- Price Hikes: Those aggressive price increases? Classic move to pump up revenue numbers right before a sale to make the asset look more appealing to buyers.
April will see more layoffs, the pig will fattened before sent to market.
If you part of SMBC Cyber update your CV
eDocs and it already happened. WTF are you talking about?
The vultures are sitting on their perches laughing at the valuations. They are waiting for the fire sale to begin mid year.