British group Micro Focus will merge with some of Hewlett Packard Enterprise’s software assets, the pair said, in a further consolidation of the global tech sector after SoftBank’s blockbuster purchase of ARM Holdings.
The deal creates an entity worth $8.8 billion (7.8 billion euros) that will be “one of the world’s largest pure-play enterprise software companies,” the two said in a statement.
Shares in Micro Focus soared more than 16 percent in early London trade Thursday.
It marks the latest in a string of tech sector mergers and acquisitions, topped by Japanese mobile firm SoftBank’s vast $32 billion takeover of British iPhone chip designer ARM Holdings in July.
“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,” HPE chief executive Meg Whitman said in a statement, unveiling the deal late Wednesday.
The move comes after the breakup of computer giant Hewlett Packard last year into two companies: software and services HPE and computer and printer maker HP Inc.