HPE to Spin Out Software Group with Micro Focus

Hewlett Packard Enterprise (HPE) will spin-off its non-core software assets, merging this business unit with Micro Focus.  The deal was valued at approximately $8.8 billion.

The software assets include HPE’s Application Delivery Management, Big Data, Enterprise Security, Information Management & Governance and IT Operations Management businesses.  These will be merged with Micro Focus, thereby creating one of the world’s largest pure-play software companies.

Micro Focus, which is headquartered in Newbury, United Kingdom, supplies identity access and security solutions; COBOL development and mainframe solutions; development and IT operations management tools; gost connectivity solutions; and collaboration and networking solutions.  Micro Focus also owns SUSE, which supplies enterprise Linux and Open Stack solutions.

In addition to the spin-off/merger, HPE and Micro Focus announced plans for a commercial partnership that will name SUSE as HPE’s preferred Linux partner and will bring together HPE’s Helion OpenStack and Stackato solutions with SUSE’s OpenStack expertise to provide best-in-class enterprise-grade hybrid cloud offerings for HPE customers.

“With today’s announcement, we are taking another important step in achieving the vision of creating a faster-growing, higher-margin, stronger cash flow company well positioned for our customers and for the future,” said Meg Whitman, President and Chief Executive Officer of HPE.

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