HP once again slims down: Will spin off to merge non-core software assets with Micro Focus

Hewlett Packard Enterprise Co will spin off and merge its non-core software assets with Britain’s Micro Focus International Plc in a deal worth $8.8 billion, the companies said on Wednesday. The move is part of HPE Chief Executive Meg Whitman’s plans to shift HPE’s strategy to a few key areas such as networking, storage, and technology services since the company separated last year from computer and printer maker HP Inc. “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,” Whitman said in a statement. The deal with Micro Focus, a multinational software company based in Newbury, United Kingdom, was announced along with HPE’s latest quarterly earnings. Kevin Loosemore, executive chairman of Micro Focus, said that “the time is right for consolidation in the infrastructure software market and this proposed merger will create one of the leading players in this space.” HPE is the latest firm looking to Britain for expansion opportunities after the United Kingdom voted to leave the European Union.