Micro Focus (LSE: MCRO.L, NYSE: MFGP) announced the completion of its merger with Hewlett Packard Enterprise’s (HPE) software business to create the seventh largest pure-play enterprise software company in the world.1 This merger brings together two leaders in the software industry to form a new, combined company uniquely positioned to help customers maximize existing software investments and embrace innovation in a world of Hybrid IT. Upon close, Chris Hsu, formerly COO of HPE and Executive Vice President and General Manager of HPE Software, was appointed CEO of Micro Focus.

“Today marks a significant milestone for Micro Focus, and I am honored to be leading this team,” said Chris Hsu, Chief Executive Officer of Micro Focus. “We are bringing together a powerful combination of technology and talent uniquely positioned to drive customer-centered innovation at enterprise scale – enabling organizations to maximize the ROI of existing software investments while embracing the new hybrid model for enterprise IT.”

According to a recent report published by the Harvard Business Review, “Business leaders anticipate that even more of their applications will reside in various third-party data centers in the near future. But critical legacy applications may not be going anywhere for some time. So orchestrating a mix of systems will become even more critical. Hybrid IT will be the dominant approach—and developing robust hybrid IT capabilities will be a competitive advantage.” 2

Micro Focus is designed from the ground up to build, sell and support software. With more than 5,800 employees in R&D, the combined company helps solve the most complex technology problems for customers, delivering world-class, enterprise-scale solutions in key areas including:

  • DevOps: enabling the rapid delivery of quality, secure applications with end-to-end visibility across a toolchain of commercial and open source offerings — leveraging the largest portfolio in the industry.
  • Hybrid IT: simplifying the management of a complex mix of platforms, delivery methods and consumption models to help organizations address business needs, control costs, and ensure availability and performance at global scale.
  • Security & Risk Management: Securing data, applications and access; powering security operations and governance to mitigate risk and maintain compliance; and harnessing the power of secure DevOps practices to ensure end-to-end risk management.
  • Predictive Analytics: Helping customers translate siloed data into real-time proactive analytics at scale, anchored on supporting open and cloud-based stacks to create new insights across applications, operations, security and the business.

 

“It is our mission to provide a best-in-class portfolio of enterprise-grade scalable software with analytics built in, and put customers at the center of our innovation building high-quality products that our teams can be proud of,” added Hsu. “Driven by this mission, Micro Focus is uniquely positioned to help customers and partners address opportunities and challenges within the new hybrid model for enterprise IT – from mainframe to mobile to cloud.”

“On behalf of everyone at DXC Technology, I would like to congratulate the Micro Focus team on this significant milestone,” said Mike Lawrie, chairman, president and CEO of DXC Technology. “This merger promises to greatly enhance our strategic partnership to help drive true digital transformation for our clients, and we look forward to further collaboration with a best-in-class partner like Micro Focus.”

This marks the fifth significant transaction in the past three years, and the largest to date for Micro Focus. It reflects the ongoing strategy to combine powerful software assets into a single company with a strong performance-based operating model.

“Our business strategy remains sound: bringing together software assets that deliver a high degree of value to our investors and an expansive solution portfolio to our customers so they can maximize the value of existing IT investments and adopt new technologies – essentially bridging the old and new,” said Kevin Loosemore, Executive Chairman of Micro Focus. “We’re excited to have Chris lead the combined company as we embark on this journey of uniting our organizations to create a world-class, pure-play enterprise software company.”