UK tech firm to acquire HP software business in £6.6bn deal

Micro Focus is set to become one of the UK’s largest technology firms after agreeing to buy Hewlett Packard Enterprise’s software business in an £6.6bn ($8.8bn) deal.

The Berkshire-based tech business is set to acquire assets from Hewlett Packard Enterprise (HPE), including UK software business Autonomy which HP bought in an infamous deal back in 2011.

As a result of the acquisition, Micro Focus will have annual revenues of around £3.4bn ($4.5bn).

Just last week, Micro Focus was promoted to the FTSE 100, replcaing ARM which was bought by Japanese telecommunications company SoftBank Group.

Once the deal is complete, HPE shareholders will own 50.1% of the share capital of the new combined group.

Kevin Loosemore, Micro Focus’ executive chairman, said: “The merger will create one of the world’s largest infrastructure software companies with leading positions across a number of key products and represents a compelling opportunity to create significant value for both companies’ shareholders by applying Micro Focus’ proven approach to efficient management of mature software products.

“The combination will give customers more choice as they seek to maximize the value of existing IT assets, leveraging their business logic and data along with next-generation technologies to innovate in new ways with the lowest possible risk.”

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