(MENAFN- Baystreet.ca) There have been a few great technology companies pop up in Canada in recent years. Open Text Corp. (TSX:OTEX) has been one of my favourites. This company operates in the cloud computing space, a sector which is poised for outstanding long-term growth as more and more personal and corporate data continues to shift to the cloud and our domestic networks continue to shift to cloud servers.
Open Text has grown both organically and via a series of acquisitions in this space, creating an absolutely astronomical growth rate in recent years. The company's stock price has now become a bet on the ability of Open Text to continue making such acquisitions and integrating companies into a corporate structure which revolves around bolt-on acquisitions, such as one of Open Text's most recent acquisition of a company named Carbonite which was received positively.
I believe Open Text has both the balance sheet room and the confidence of investors to engage in further acquisitions. The high-quality management team of Open Text has done an incredible job of creating synergies with previous acquisitions ensuring earnings accretion and productivity growth overtime. For those seeking a pathway to growth coming out of this recession, I'd recommend considering companies like Open Text supported by strong secular growth trends.
Invest wisely, my friends.
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