HP Enterprise reaches $ 8,800 million agreement with British group Micro Focus
Hewlett Packard Enterprise Co (NYSE: HPQ ) will spin off and merge their assets in non – strategic software with British Micro Focus International Plc (LON: MCRO ) in a deal valued at 8,800 million dollars, said Wednesday the companies.
The move is part of plans for the CEO, Meg Whitman, to focus the strategy of the US firm in networking, storage, data centers and technology services, after separating last year from the maker of printers and computers HP Inc .
“With the announcement today (Wednesday), we are taking another important step in achieving the vision of creating a fast-growth, higher margins and flows well positioned for our customers and for the future more solid boxes,” said Whitman in a release.
The agreement with Micro Focus, a multinational software company based in UK was announced along with the latest quarterly results of HPE.
In the third quarter, HPE recorded net income of 12,200 million, a decline of 6 percent compared to 13.100 million in the same period last year.
In addition, the agreement is known the same day that Dell and EMC Group (NYSE: EMC ) completed their merger in a deal that unites the two biggest rivals of HPE.
The transaction would be tax-free to HP. Micro Focus will pay 2,500 million dollars in cash HPE, while HPE shareholders will own 50.1 percent of the combined firm will operate under the name Micro Focus and will be directed by its executives.
HP said it would pay $ 700 million in non-recurring expenses related to the separation of assets.