Leading UK enterprise software firm Micro Focus is merging with HPE’s business software division in a deal worth around £7 billion.
The two-part deal will see the HPE business unit broken off into a fully separate company and put into the hands of its existing shareholders. That’ll then merge with British tech firm Micro Focus and head for listing on the London Stock Exchange in a rare US to UK technology deal.
Interestingly, part of the division being sold off is the company formerly known as Autonomy, a Cambridge-based big data company that was bought in a controversial deal and found to have been significantly overvalued.
Micro Focus will become the minority shareholder of the merged company and hand over $2.5 billion to HPE for its share.
The sell off is part of a wider restructuring of ailing tech giant HP Inc, which has seen the company split into two and will lose some 150,000 staff by 2017 in restructuring deals under CEO Meg Whitman.
HPE (as opposed to PC and printer arm HP Inc) has also announced that Micro Focus’ SUSE will be its “preferred Linux partner” moving forward, demonstrating that yet another tech giant is keeping a watchful eye on the open source that’s eating its lunch.
This article has been updated to reflect the fact that the global headcount will fall by 150,000 by 2017. An earlier version said this had already happened.
The article also said that Autonomy made up the entirety of the division being sold off, when it is in fact only part of the division.