HPE offloads software arm to Micro Focus in $8.8 billion 'spin-merge'

The move will make HPE a far more attractive target for a possible sale, one analyst said

HPE CEP Meg Whitman
Eric Draper/HP Enterprise

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.

该交易条款是HPE的25亿美元的现金支付和HPE股东的新联合公司的50.1%。HPE拒绝指定人员配置的影响是什么。联合公司将由微焦点凯文洛斯莫尔·凯文洛斯莫尔领导,该交易预计将于2017财政年度下半年关闭。

"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, HPE's president and CEO, in a statement.

HPE's strategy for the future is to focus on hybrid IT, said Ric Lewis, senior vice president for the software-defined and cloud group at HPE, in an interview on Wednesday.

Accordingly, it recently formed three core business groups within HPE's Enterprise Group division: One focusing on software-defined and cloud technologies, one focused on data center infrastructure, and one focused on edge technologies and the internet of things. It is retaining the software efforts that are central to its hybrid IT focus, Lewis said, including the CloudSystem brand, HPE OneView, Helion OpenStack, and its software-defined storage and networking products.

“我们真的看到了我们在混合它周围的增长机会,”他解释道。“整个世界正在谈论公共云的发展,但并非很多人都注意到私人云也正在以两位数的速度增长。这对我们来说是一个巨大的机会。”

HPE也在“加倍下来,提供新的现代,多云基础设施 - AS-Service软件”,“他补充说,”在今天的IAAS的东西上建立了露天者,但扩展到码头,塞体和世界阵线。“

Customers of both HPE and Micro Focus will benefit from the move, Lewis said, through accelerated delivery, increased agility and lower costs.

HPE has had something of a bumpy ride since itssplitfrom HP's PC and printer group last year, so honing its focus could be a good thing for its future.

“我实际上被解除了HPE正在回到每个人都知道他们做得好的东西,并且那是基础设施和平台,”Moor Insights&Strateg的主要分析师Patrick Moorhead说。

"'Big' and application software didn't work well for HPE, and I think they have the potential to move much more quickly in the future in areas where they can make a real impact," he said.

例如,HPE的协同合作组合式基础设施是HPE“可以改变游戏,而不仅仅是参加,”他说。

The move is very similar to the one HPE pursued recently when it merged its enterprise services business with CSC, noted Charles King, principal analyst with Pund-IT.

"HPE is effectively making itself a smaller company with significantly higher profit margins," King said. "That should and probably will allow HPE to deliver greater returns to its shareholders, something I'm sure they'll appreciate."

The move will also make HPE a far more attractive target for a possible sale, King added. "Whether that's CEO Meg Whitman's eventual goal is anyone's guess, but the Micro Focus deal certainly moves HPE further along that path."

As part of the spin-merge transaction, Micro Focus and HPE also announced plans for a commercial partnership naming SUSE, a Micro Focus subsidiary, as HPE's preferred Linux partner. They will also explore additional collaboration around HPE's Helion OpenStack and Stackato platform-as-a-service products.

Also on Wednesday, HPE announcedfinancial results截至2016财年第三季度,包括122亿美元的净收入,距离前一年的6%。但是,每股收益,以前的前景为每股49美分。

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