HPE announced at their third quarter results this Wednesday that they will spin off and merge their software division with Micro Focus in a deal worth $8.8 billion. HPE remains majority shareholder at 50.5% of the new combined company with expected annual revenue of $4.5 billion and a $2.5 billion cash payout.
Meg Whitman announced “the combination of HPE’s Application Delivery Management, Big Data, Enterprise Security, Information Management & Governance and IT Operations Management businesses with Micro Focus will create one of the world’s largest pure-play software companies.”
The merge comes off the back of several rumours mostly indicating interest from various private equity firms. The deal includes HPE’s ‘non core’ software assets including Vertica, ArcSight, and products from its acquisitions of Autonomy and Mercury Interactive.