In a few hours, a business software giant will be born: the company resulting from the acquisition of HPE’s software business by UK Micro Focus for $ 8.8 billion. The new company will begin trading today on the New York Stock Exchange.
The company resulting from the merger between Micro Focus and the software asset area of HPE was born on 1 September . The goal of the new firm is to become one of the largest software companies in the world. The new Micro Focus will have around 4,000 employees worldwide and will be the UK’s largest technology company by market capitalization.
The acquisition of the software business of HPE by British technology was announced a year ago and amounts to a whopping $ 8.8 billion . The sales process has been peculiar and has followed the ‘spin & merge ‘ strategy that HPE has already tackled in other operations, such as the CSC in the service area . In fact, HPE will continue to maintain 50.1% ownership of the new company , which will be led by Chris Hsu, until now right-hand of Meg Whitman (CEO of HPE) throughout this process. Hsu himself explained the movement to IDG: “The core of our business was the business area, but we wondered if we had the right assets to tackle the entire global strategy. We decided that they would work better if they thrived as independent pieces combined with other players. ”
Hsu explains in the blog of the new company the important step that involves the creation of the new company after “months of preparation and planning. It’s the way of a new chapter , and as CEO of the new joint venture I can not be more proud to lead the one of the largest independent software companies in the world. ” The manager asserts that ” this merger matters . It matters because we have brought together two companies with global scale and proven leadership in the software industry. It matters because we are an independent software company, focused 100% on the creation, sale and support of software. ”
This is the new Micro Focus
Micro Focus, based in the United Kingdom, is now listed on the London Stock Exchange, but from today it will also do so in New York. Specifically, the new company will now host HPE’s corporate software assets related to application management, big data , enterprise security, corporate governance and management, and IT operations management .
In addition to this great purchase, in 2014 Micro Focus acquired Attachmate in 2014, which in turn owns the Linux company SUSE , owned by the British company. In fact, as part of the transaction, Micro Focus and HPE announced a few months ago plans for a commercial agreement under which SUSE would become HPE’s special partner. The two companies also say they will explore additional collaboration around HPE’s Helion OpenStack and Stackato platforms.
Objective: to be one of the great players of enterprise software
HPE CEO Meg Whitman explained when the announcement was made that the company “maintains the key software assets to meet the expectations of hybrid IT.” The new company, according to the directive, will be “one of the largest independent and specialized software companies in the world.” For his part, Kevin Loosemore , CEO of Micro Focus, noted then: “Now is the right time for consolidation in the software market infrastructure and this proposed merger will create one of the leading players in this space.” The joint organization, he said, will strengthen the company’s position and bring its customers closer to the world of mobility, cloud , internet of things and analytics.