HPE moves software division to Micro Focus

The British software company Micro Focus is taking over the software branch of the American Hewlett Packard Enterprise. HPE plans to focus on network, storage and technology services after the spin-off.

This is evident from a message on the HPE website. With the acquisition, which should generate 7.8 billion euros, Micro Focus will become one of the largest software companies in the world. Under this agreement, HPE shareholders will own 50.1 percent of Micro Focus’s shares.

HPE, then known as HP, acquired part of its current software division in 2011 through the acquisition of the British software company Autonomy Corp PLC for $10.3 billion. Autonomy Corp PLC later lost three-quarters of its value due to mismanagement, according to HP. Hewlett Packard Enterprise was created after the separation of HP’s consumer and business divisions.

Micro Focus is a software company that focuses on updating outdated IT systems. In 2014, Linux company Suse and software company Attachmate acquired. Following the acquisition of HPE’s software business, Micro Focus has combined annual sales of $4.5 billion, compared to $1.2 billion before the acquisition.