Does this mean we will be split up ? Any news ?
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Or it could be the old company trick of splitting into two and parking all the negative bits into one, leaving the remaining one pure as snow. Lots of mining companies uses that trick.
Courtesy McKinsey
@as Simplifying corporate structure is a key step in selling an entire company.
@OP It is a broad consolisation of legal entities. It gives OT a cleaner corp structure for portfolio moves and legally easier to carve out a business. Many entities are being combined. It basically changes "the entity that employees and pays you" under the OT umbrella. Very deliberate. Stay tuned.
@ac Most likely the safest way to declare bankruptcy and leave the shareholders holding the bag while the ELT and BoD get away scot free.
@ac I'm skeptical of that explanation.
The existence of Open Text Cloud Service Company ULC is not a rumor. It appears in OpenText's fiscal 2026 subsidiary disclosures. Likewise, Open Text Cloud Partnership, LP and other cloud-related entities are listed in recent SEC filings.
While it is technically true that a ULC is an unlimited liability corporation, the conclusion that this change was made "to attract U.S. investors" is pure speculation. Historically, Canadian ULCs have been used primarily in cross-border corporate and tax structures, particularly between Canadian parent organizations and U.S. subsidiaries. They are not typically established because public investors want exposure to unlimited liability.
Looking at OpenText's public filings, management has been focused on debt reduction, cost optimization, cloud growth, AI initiatives, and simplifying operations following several large acquisitions. Given those priorities, it would not be surprising to see the company continue consolidating legal entities and aligning legacy organizations under cloud-focused structures.
Based on the evidence currently available, the filings support the existence of a cloud-related legal reorganization. They do not support the conclusion that OpenText is splitting up or that the purpose is to attract U.S. investors.
@OP I'm in the US (former MF) and just got notified about going from "Open Text US LLC" to "Open Text Inc."
Not sure if we split up but we are becoming an Unlimited Liability Corporation (ULC) which means shareholders will be liable if the company goes bankrupt. Not sure why this legal entity change was decided. Could be to attract US investors.
Not sure if we split up but we are becoming an Unlimited Liability Corporation (ULC) which means shareholders will be liable if the company goes bankrupt. Not sure why this legal entity change was decided. Could be to attract US investors.