HP Enterprise spins off software businesses in $8.8-billion deal

Hewlett Packard Enterprise Co. will spin off software units in an $8.8-billion (U.S.) deal that it says will help it focus on faster-growing businesses.

The Palo Alto, Calif., company said Wednesday that the spun-off software businesses – they include big data, security for big companies and IT operations management units – will merge with U.K. software company Micro Focus International PLC.

Hewlett Packard Enterprise will get a $2.5-billion cash payment and a 50.1-per-cent stake in the combined company.

The deal requires antitrust approval and is expected to close in the third quarter.

Hewlett-Packard Co. last year split into two companies, with Hewlett Packard Enterprise selling commercial tech products and services, while HP Inc. focuses on personal computers and printers.