A Micro Focus HPE has created a new technology giant on the world stage. Micro Focus is to purchase Hewlett-Packards software business HPE. The deal is worth $8.8 billion (£6.6 billion). HPE (Hewlett Packard Enterprises) includes Autonomy, the firm that HP mistakenly purchased in 2011. That $10 billion takeover deal was botched from the start and is still under dispute. The Micro Focus deal includes the assets of this company.
As a result of Micro Focus HPE purchase, Micro Focus will be amongst the largest technology companies in the UK. With annual revenues of $4.5 billion Micro Focus reached the FTSE top 100 last week. The company is based in the town of Newbury in England.
It has expanded by means of a number of acquisitions from a $5 billion company to a significant player in the technology field with revenues of $10 billion in 2015. Micro Focus got a huge share increase in morning trading of 18%, and it bucks a trend by being a British company buying an American firm.
Micro Focus Executive Chairman, Kevin Loosemore, stated that the purchase was consistent with his company’s long-term strategy to be “the most disciplined global provider of infrastructure software.” He said that the market turbulence caused by the UK Brexit vote did not concern him.
Micro Focus will retain its listing in the London Stock Exchange, and will be run by British managers. Hewlett Packard was once a giant in world technology, but it has been aging and financially weak. The Silicon Valley founder now belongs to a UK company. It put the first PC for sale in 1968 and was also a leader in the technology of hand-held computers as opposed to simple calculators.
Under the agreement, Micro Focus will pay Hewlett Packard Enterprise Co $2.5 billion in cash. HPE shareholders will own 50.1% of the shares of the combined company. It will operate under the name Micro Focus and run by MF executives. The Micro Focus HPE amalgmation will be good for the UK and also both companies.
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