OpenText is acquiring Micro Focus, one of the world’s largest enterprise software providers that serves thousands of organizations globally. It’s a deal worth $6 billion.

OpenText said it will pay $6.30 in cash for each Micro Focus share, a premium of almost 99% over Micro Focus’ closing price on Thursday, giving the company a market capitalization of about $2 billion. The acquisition should close in the first quarter of 2023, subject to the satisfaction of various conditions.

Micro Focus is based in the United Kingdom. Its customers include many of the largest companies in the Fortune Global 500.

Mark Barrenechea is OpenText‘s CEO and CTO.

OpenText’s Mark Barrenechea

“We are pleased to announce our firm intention to acquire Micro Focus,” he said. “And I look forward to welcoming Micro Focus customers, partners and employees to OpenText. Upon completion of the acquisition, OpenText will be one of the world’s largest software and cloud businesses with a tremendous marquee customer base, global scale and comprehensive go-to-market.”

With Micro Focus, OpenText can more effectively help customers’ digital transformation efforts, the buyer said. It can do so by unlocking the full value of their information assets and core systems.

Massive Combined Addressable Market

Micro Focus brings meaningful revenue and operating scale to OpenText, Barrenechea said. OpenText will have a combined total addressable market of $170 billion.

“We intend to fund the all-cash acquisition with existing cash, new debt and our existing revolving credit facility,” he said. “OpenText does not contemplate raising any equity to fund the acquisition … and we expect to have Micro Focus on our operating model within six quarters of closing the transaction.”

Micro Focus told Reuters it considered the terms of the deal to be “fair and reasonable” and would recommend shareholders vote in favor of the acquisition.

Micro Focus has $4.4 billion in debt, according to its latest earnings report.

The U.K. company’s technology helps tens of thousands of customers worldwide manage core IT elements of their business.