OpenText Announces IRS Matter Settlement

- Open Text Corporation (NASDAQ: OTEX), (TSX: OTEX), "The Information Company," today announced that on December 21, 2020 the Company entered into a closing agreement with the U.S. Internal Revenue Service (IRS) resolving all of the previously disclosed proposed adjustments to its taxable income for Fiscal 2010 and Fiscal 2012 (the "IRS Settlement").

In connection with the IRS Settlement, against the IRS' total disputed claim value of approximately $830 million , estimated as of December 31, 2020 and inclusive of proposed accrued interest at applicable statutory rates, OpenText will make aggregate payments of approximately $290 million to the IRS in U.S. federal taxes and interest. The IRS Settlement also eliminates approximately $90 million in future withholding taxes that OpenText had expected to pay over the next 10 years.

The Company expects the IRS Settlement to result in an approximately $290 million charge to GAAP-based net income (loss) for the second quarter of Fiscal 2021 ending December 31, 2020 , and the Company expects to make payments to the IRS of approximately $290 million in the third quarter of Fiscal 2021, ending March 31, 2021 .  In connection with the IRS Settlement, the Company also expects to make certain associated State tax and interest payments of approximately $10 million to $15 million throughout calendar 2021.

OpenText believes the IRS Settlement to be in the best interest of all stakeholders, as it closes all past, present and future items related to this matter. The IRS Settlement provides finality to this longstanding matter.

About OpenText

OpenText, The Information Company™, enables organizations to gain insight through market leading information management solutions, on-premises or in the cloud. For more information about OpenText (NASDAQ: OTEX, TSX: OTEX) visit opentext.com.

Cautionary Statement Regarding Forward-Looking Statements

Certain statements in this press release, including statements about the timing of payments in connection with the IRS Settlement, anticipated impact on financial results, associated State tax and interest payments, and other matters, may be considered forward-looking statements or information under applicable securities laws. These statements are based on OpenText's current expectations, estimates, forecasts and projections about the operating environment, economies and markets in which the Company operates. These statements are subject to important assumptions, risks and uncertainties that are difficult to predict, and the actual outcome may be materially different. OpenText's assumptions, although considered reasonable by the company at the date of this press release, may prove to be inaccurate and consequently its actual results could differ materially from the expectations set out herein. For additional information with respect to risks and other factors which could occur, see OpenText's Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and other securities filings with the SEC and other securities regulators. Unless otherwise required by applicable securities laws, OpenText disclaims any intention or obligations to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

OTEX-F

For more information, please contact:

Harry E. Blount
Senior Vice President, Global Head of Investor Relations
Open Text Corporation
415-963-0825
investors@opentext.com

Copyright ©2020 Open Text. OpenText is a trademark or registered trademark of Open Text. The list of trademarks is not exhaustive of other trademarks. Registered trademarks, product names, company names, brands and service names mentioned herein are property of Open Text. All rights reserved. For more information, visit: https://www.opentext.com/who-we-are/copyright-information .

Cision View original content: https://www.prnewswire.com/news-releases/opentext-announces-irs-matter-settlement-301197508.html

SOURCE Open Text Corporation

News Provided by PR Newswire via QuoteMedia

The Conversation (0)
Tech 5: Meta Plans Multi-Billion AI Bet, Apple Reveals iOS 26 at WWDC 2025

Tech 5: Meta Plans Multi-Billion AI Bet, Apple Reveals iOS 26 at WWDC 2025

This week saw a flurry of activity in the tech world, from Apple's (NASDAQ:AAPL) new product announcements to Amazon's (NASDAQ:AMZN) massive infrastructure investment in Pennsylvania.

Meanwhile, Nvidia's (NASDAQ:NVDA) European expansion and its role as an AI powerhouse were all but cemented after a series of announcements at the Paris VivaTech Conference, and Meta Platforms (NASDAQ:META) made some big moves in the AI startup space.

Read on to dive deeper into this week's top tech stories.

Keep reading...Show less
3D model of an intricate oil reservoir.

Why 3D Visualisation is a Game Changer for Resource Asset Management

Forget spreadsheets and static blueprints. The future of resource asset management is unfolding in three dimensions, and smart money is starting to take notice.

3D visualisation is no longer a niche tool; it's rapidly becoming the indispensable core of how resource companies — such as mining, oil and gas and utilities — are tackling their most pressing challenges, from optimising daily operations to achieving critical environmental, social and governance objectives. For investors, this isn't just a technological upgrade; it's a paradigm shift with significant implications for portfolio performance.

Keep reading...Show less
Digital security concept with shield icon and abstract network design.

Tech 5: CoreWeave and Applied Digital Strike Deal, Startup Anduril Raises US$2.5 Billion

This week’s developments across the tech sector underscored the deepening connection between advanced computing, capital flows and geopolitical dynamics.

Applied Digital (NASDAQ:APLD) secured a landmark agreement with CoreWeave (NASDAQ:CRWV), while Broadcom’s (NASDAQ:AVGO) newest high-performance chip hit the market. Meanwhile, Canada’s Cohere is reportedly seeking fresh funding as it builds momentum in the enterprise artificial intelligence (AI) space.

In the defense sector, Anduril Industries secured a new round of funding, and elsewhere geopolitical tensions made their mark on Apple’s (NASDAQ:APPL) AI rollout in China.

Keep reading...Show less
Vancouver Convention Center and skyline.

Web Summit 2025: AI Innovation, Investment Shifts and Global Tech Alliances Take Center Stage

The Vancouver edition of Web Summit took place last week, bringing 15,727 attendees from 117 countries together, including 159 partners, 681 investors and 50 trade delegations.

A record-breaking 1,108 startups across a range of tech-touching industries exhibited, showcasing their products, services and ideas, from groundbreaking biotech advancements to revolutionary sustainable energy solutions.

Artificial intelligence (AI) was a prominent feature across all these innovations, underscoring the rapid pace of technological advancement and its pervasive influence across all aspects of modern life.

Keep reading...Show less
US flag on a microchip with red, white and blue circuit lines on a black background.

Trump Admin Strips "Safety" from AI Oversight Institute in Move to Rebrand

The Trump administration announced a rebrand of the US Artificial Intelligence (AI) Safety Institute, stripping the word “safety” from the organization's title and mission.

The institute, once tasked with developing standards to ensure AI model transparency, robustness and reliability, will now be known as the Center for AI Standards and Innovation (CAISI). According to the announcement, its focus will be on enhancing US competitiveness and guarding against foreign threats, not constraining the industry with regulations.

The decision, announced on Tuesday (June 3) by US Secretary of Commerce Howard Lutnick, marks a sharp departure from the Biden-era posture on AI governance.

Keep reading...Show less
NVIDIA logo.

NVIDIA Rallies After Strong Q1, AI Demand Outshines China Export Hit

NVIDIA (NASDAQ:NVDA) shares rose over 5 percent to hit US$142.50 on Thursday (May 29), extending a powerful rally that reflects Wall Street’s optimism in the chipmaker’s long-term trajectory

The company's positive performance came despite a bruising blow from US export restrictions to China.

The semiconductor giant, seen by many industry experts as the backbone of the global artificial intelligence (AI) boom, reported better-than-expected financial results for its first fiscal quarter of 2026 on Wednesday (May 28), allaying fears that geopolitical tensions and tighter trade controls could derail its momentum.

Keep reading...Show less

Latest Press Releases

Related News

×