This article is from the source 'bbc' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at http://www.bbc.co.uk/news/business-37303066
The article has changed 9 times. There is an RSS feed of changes available.
| Version 3 | Version 4 |
|---|---|
| UK tech firm swoops on HP software unit in £6.6bn deal | UK tech firm swoops on HP software unit in £6.6bn deal |
| (about 2 hours later) | |
| UK tech firm Micro Focus will buy Hewlett-Packard's software business in a deal worth $8.8bn (£6.6bn). | UK tech firm Micro Focus will buy Hewlett-Packard's software business in a deal worth $8.8bn (£6.6bn). |
| Hewlett Packard Enterprise (HPE) includes the assets of Autonomy, the UK software group that HP bought in an ill-fated deal in 2011. | Hewlett Packard Enterprise (HPE) includes the assets of Autonomy, the UK software group that HP bought in an ill-fated deal in 2011. |
| The deal makes Micro Focus one of the UK's biggest tech companies, with total annual revenues of $4.5bn (£3.4bn). | The deal makes Micro Focus one of the UK's biggest tech companies, with total annual revenues of $4.5bn (£3.4bn). |
| Micro Focus was promoted to the FTSE 100 last week, replacing ARM after it was bought by Japan's Softbank. | Micro Focus was promoted to the FTSE 100 last week, replacing ARM after it was bought by Japan's Softbank. |
| A string of acquisitions has turned Micro Focus, based in Newbury, England, from being a relatively small player to being worth over £5bn, with revenues doubling in 2015. | A string of acquisitions has turned Micro Focus, based in Newbury, England, from being a relatively small player to being worth over £5bn, with revenues doubling in 2015. |
| Shares in Micro Focus soared 18% in morning trading, making it the biggest winner on the FTSE 100. | Shares in Micro Focus soared 18% in morning trading, making it the biggest winner on the FTSE 100. |
| Kevin Loosemore, Micro Focus executive chairman, said: "Today's announcement marks another significant milestone for Micro Focus." | |
| Mr Loosemore said he approached Hewlett-Packard in February about a deal and was not put off by the market turbulence that followed the Brexit vote in the UK. | Mr Loosemore said he approached Hewlett-Packard in February about a deal and was not put off by the market turbulence that followed the Brexit vote in the UK. |
| HPE has more than 50,000 customers including many of the biggest US companies. | HPE has more than 50,000 customers including many of the biggest US companies. |
| Analysis: Dominic O'Connell, Today business presenter | Analysis: Dominic O'Connell, Today business presenter |
| We are accustomed to headlines bemoaning another UK industrial champion falling to a foreign predator. This morning the tide, if only briefly, is flowing the other way. | We are accustomed to headlines bemoaning another UK industrial champion falling to a foreign predator. This morning the tide, if only briefly, is flowing the other way. |
| Micro Focus, a fast-growing technology firm based in Newbury, Berkshire, is merging with a division of the original Silicon Valley titan, Hewlett-Packard. | Micro Focus, a fast-growing technology firm based in Newbury, Berkshire, is merging with a division of the original Silicon Valley titan, Hewlett-Packard. |
| Although the combination will have a slim majority of shareholders from the US company, this is a British takeover. The new Micro Focus will keep its listing on the London Stock Exchange, and the management will be British. | Although the combination will have a slim majority of shareholders from the US company, this is a British takeover. The new Micro Focus will keep its listing on the London Stock Exchange, and the management will be British. |
| The new entity should have a stock market value north of £10bn - about twice the market cap of Sainsburys. | The new entity should have a stock market value north of £10bn - about twice the market cap of Sainsburys. |
| While it is tempting to see this as a swallow that might herald a golden summer of takeovers by ambitious British companies, it has more to do with the weakness of an ageing tech giant rather than a resurgence of appetite on this side of the Atlantic. | While it is tempting to see this as a swallow that might herald a golden summer of takeovers by ambitious British companies, it has more to do with the weakness of an ageing tech giant rather than a resurgence of appetite on this side of the Atlantic. |
| Hewlett-Packard is rightly credited with having founded Silicon Valley, nurturing a string of high-tech entrepreneurs and technology companies that went on to conquer the world. | Hewlett-Packard is rightly credited with having founded Silicon Valley, nurturing a string of high-tech entrepreneurs and technology companies that went on to conquer the world. |
| In 1968, it put the first personal computer on sale - a snip at $5,000. Only two years ago it still employed 210,000 people; after today's deal, that number falls to 50,000. | In 1968, it put the first personal computer on sale - a snip at $5,000. Only two years ago it still employed 210,000 people; after today's deal, that number falls to 50,000. |
| Turnaround | Turnaround |
| For Hewlett-Packard it is part of a dramatic downsizing from having been a giant of the computer industry with annual revenues of more than $100bn. | For Hewlett-Packard it is part of a dramatic downsizing from having been a giant of the computer industry with annual revenues of more than $100bn. |
| Under chief executive Meg Whitman the group has been stripped down to what she believes is its core strengths. | Under chief executive Meg Whitman the group has been stripped down to what she believes is its core strengths. |
| HPE was one part of Hewlett-Packard which split into two last year. The other part, HP Inc, focuses on computers and printers. | HPE was one part of Hewlett-Packard which split into two last year. The other part, HP Inc, focuses on computers and printers. |
| The software spinoff follows HPE's announcement of the sale of its business services division to CSC for $8.5bn. | The software spinoff follows HPE's announcement of the sale of its business services division to CSC for $8.5bn. |
| "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 Ms Whitman. | "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 Ms Whitman. |
| The sale is also being seen as a way for Hewlett-Packard to finally shed itself of its ill-fated purchase of Autonomy. | The sale is also being seen as a way for Hewlett-Packard to finally shed itself of its ill-fated purchase of Autonomy. |
| After the takeover, Hewlett-Packard wrote off about three-quarters of Autonomy's value, claiming that "accounting misrepresentations" had led it to overpay for the firm. | After the takeover, Hewlett-Packard wrote off about three-quarters of Autonomy's value, claiming that "accounting misrepresentations" had led it to overpay for the firm. |
| Autonomy denied that and a slew of legal action then followed. | Autonomy denied that and a slew of legal action then followed. |