April 26, 2010 / 10:06 PM / 8 years ago

UPDATE 1-Canada's Open Text to buy Burntsand for C$11 mln

* To pay C$0.15 /shr

* Offer at 114 pct premium to Burntsand’s Friday close

* Deal expected to close in Q2

* Burntsand shares rise 36 pct, Open Text falls 3 pct

April 26 (Reuters) - Burntsand Inc BRT.TO, a Canadian technology consultancy, agreed to be bought by Open Text Corp OTC.TO (OTEX.O), a provider of business content management software, for about C$11 million ($11 million).

Open Text will buy all Burntsand shares at 15 Canadian cents apiece, which is a 114 percent premium to their closing price Friday, and merge Burntsand with an Open Text unit.

The deal is expected to close in the second quarter and Burntsand has agreed to pay a termination fee to Waterloo, Ontario-based Open Text if the deal falls through, Burntsand said in a statement.

Shares of Toronto-based Burntsand closed up 36 percent at 9.5 Canadian cents, while those of Open Text closed down over 3 percent at C$48.11 Monday on the Toronto Stock Exchange. ($1=1.000 Canadian Dollar) (Reporting by Abhiram Nandakumar in Bangalore; Editing by Gopakumar Warrier)

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