Hewlett Packard Enterprise will spin off and merge what it considers its non-core software assets with U.K.-based enterprise software firm Micro Focus in a deal worth $8.8 billion, the company said Wednesday.
Included in the bundle being offloaded are HPE’s businesses focusing on application delivery management, big data, enterprise security, information management and governance, and IT operations management. Combined with Micro Focus, which acquired Attachmate in 2014 and owns Linux company SUSE, it will create one of the world’s largest pure-play software companies, HPE said, with a combined sales force of about 4,000 people.
Among the terms of the deal are a $2.5 billion cash payment to HPE and 50.1 percent ownership of the new combined company by HPE shareholders. HPE declined to specify what the staffing impact would be. The combined company will be led by Kevin Loosemore, executive chairman of Micro Focus, and the deal is expected to close by the second half of HPE’s fiscal year 2017.