07-09-2016, 22:13 #1
[EN] HPE in talks to sell its software businessMike Wheatley
Sep 2, 2016
Hewlett-Packard Enterprise Co. (HPE) is reportedly holding talks with private equity investment firm Thoma Bravo LLC over the sale of its software business, following rumors of a deal earlier this summer.
The Reuters news agency cites unnamed sources as saying that Thoma Bravo is just one of a number of private equity firms to have made a bid for HPE’s software assets. The report says its bid of between $8 billion and $10 billion was the highest offer. The deal has not yet been finalized, and the sources said it may well be that Thoma Bravo only buys some of HPE’s assets, or none at all.
Earlier reports this summer said that HPE CEO Meg Whitman was looking to sell the software unit – which includes Autonomy, Mercury Interactive and Vertica – in order to double down on areas such as cloud and data center infrastructure.
The latest report comes in the same week as HPE holds its Big Data Conference in Boston, where SiliconANGLE’s TV show theCUBE interviewed a number of company execs and took a closer look at the latest version of its Vertica analytics software. Interestingly, much of the attention at the show was focused on HPE’s software rather than its hardware.
HPE’s ongoing restructuring, which began when it split from HP Inc., its PC and printer arm, is designed to position the company a serious player in new trends such as cloud, data analytics, the Internet of Things (IoT), artificial intelligence (AI), virtualization and software-defined data centers. The company has already spun out its enterprise services business as a separate entity and will soon merge it with Computer Science Corp. (CSC) in a deal that should net HPE around $8.5 billion once it concludes in March 2017. The arrangement means HPE keeps a finger in the services pie while reducing the costs of running the business itself.
It seems HPE wants to do something similar with its software business, which saw some of the firm’s highest declines in its fiscal second quarter results. Revenues slumped by 13 percent, licensing fell by 12 percent and support sales dropped by 16 percent. The company will report fourth-quarter earnings on Sept. 7.
It now appears that under Chief Executive Meg Whitman, HPE is not as dedicated to leading the way in software anymore, Dave Vellante, chief research officer at Wikibon Research and co-chief executive of SiliconANGLE Media, said in an analysis on theCUBE. “It seems that HPE is comfortable being an arms dealer to the cloud, duking it out with Dell,” he said. Co-host Paul Gillin, however, said it’s not apparent why HPE would want to double down on hardware when “it’s clear software is where the growth is going to be, where the margins are.”
The bulk of HPE’s software business was acquired back in 2011, when it bought Autonomy for $11 billion and later Vertica for around $320 million. Mercury Interactive has been around a while longer, with HP snapping it up for $4.5 billion back in 2006.
Neither HPE nor Thoma Bravo would comment on the report.
07-09-2016, 22:49 #2
HPE to Spin Software in $8.8 Billion Deal With Micro FocusBy Brian Womack and Alex Sherman
September 7, 2016 — 8:12 PM BRT
Hewlett Packard Enterprise Co. said it’s spinning off and merging some non-core software assets in a deal with U.K.-based Micro Focus International Plc valued at about $8.8 billion, continuing Chief Executive Officer Meg Whitman’s effort slim down its operations.
As part of the deal, Hewlett Packard Enterprise said it will receive $2.5 billion in cash and its shareholders will have 50.1 percent ownership in the new merged company. The software assets include areas such as application delivery management, big data and enterprise security, the Palo Alto, California-based company said Wednesday in a statement.
Whitman -- who split HPE from sister company HP Inc. in November -- is looking for more ways to pare down her company. Her aim is to make Hewlett Packard Enterprise nimbler to woo customers with more options from cloud-computing providers such as Amazon.com Inc. and Microsoft Corp. The move follows the announcement in May that Hewlett Packard Enterprise would merge its technology-services division with Computer Sciences Corp. in a deal valued at about $8.5 billion.
“They are fantastic assets,” Whitman said in an interview. “They’re just not core to our strategy.”
The deal is the biggest announced acquisition by a U.K. buyer of an overseas target since British voters opted on June 23 to leave the European Union. Micro Focus, based in Newbury, England, is one of Britain’s largest technology companies, and coincidentally is replacing ARM Holdings -- the chip designer whose sale to Japan’s Softbank was completed this week -- in the FTSE-100 index.
Some of the assets will be returning to their home country as well. Micro Focus will be picking up pieces of Hewlett Packard’s troubled acquisition of Autonomy Corp., which had been based in the U.K. The deal was announced under Whitman predecessor Leo Apotheker in 2011.
The following year, the company announced it would take an $8.8 billion charge, citing falsifications -- and would subsequently face legal headaches surrounding the deal.
Hewlett Packard Enterprise had been considering a sale of some of those software assets at least since July, according to people familiar with the matter.
Shares were relatively unchanged in extended trading after earlier gaining 1.1 percent to close at $22.09 in New York. The stock has jumped 45 percent this year.
Hewlett Packard Enterprise also Wednesday forecast profit, excluding some items, in the current quarter of 58 cents to 63 cents a share compared with analysts’ projections of 60 cents. The company reported third-quarter profit of 49 cents a share while analysts’ had estimated 44 cents, according to data compiled by Bloomberg.
Micro Focus can use the assets to bolster its software products that help customers on a variety of fronts, including business applications, security and with data centers. The combined company will be led by Kevin Loosemore, executive chairman of Micro Focus. Micro Focus expects to improve the margin on Hewlett Packard Enterprise’s software assets by about 20 percentage points by the end of the third full financial year following the close of the transaction, the companies said.
“It’s a really successful pure-play software company that knows how to manage mature assets and growing assets,” Whitman said. “And actually, these assets will get more investment with Micro Focus than they would with us.”
The new company will have annual revenue of about $4.5 billion, Micro Focus said in a statement. The board will include a Hewlett Packard Enterprise senior executive and HPE will nominate half the independent directors.
“The time is right for consolidation in the infrastructure software market and this proposed merger will create one of the leading players in this space,” Loosemore said in the statement.
07-09-2016, 22:58 #3
PR: HPE Accelerates Strategy With Spin-Off and Merger of Non-Core Software Assets
HP Helion OpenStack: "HPE's newly created Software-Defined and Cloud business will build upon key software assets like HPE OneView and the Helion Cloud platform to deliver software-defined Hybrid IT solutions like Synergy -- HPE's composable infrastructure offering that enables customers to operate their workloads with unprecedented speed and agility."
HPE Accelerates Strategy With Spin-Off and Merger of Non-Core Software Assets With Micro Focus
HPE to Retain Key Software Assets to Deliver on the Promise of Hybrid IT
PALO ALTO, CA--(Marketwired - Sep 7, 2016) - Hewlett Packard Enterprise (NYSE: HPE)
- Transaction valued at approximately $8.8 billion, including 50.1% ownership of the new combined company by HPE shareholders and a $2.5 billion cash payment to HPE
- Combination creates one of the world's largest pure-play enterprise software companies
- Accelerates HPE's strategy to unlock faster-growing, higher-margin and stronger free cash flow company
- HPE to discuss transaction during Q3 earnings call at 5:00 p.m. ET today.
Hewlett Packard Enterprise (NYSE: HPE) today announced plans for a spin-off and merger of its non-core software assets with Micro Focus (LSE: MCRO) in a transaction valued at approximately $8.8 billion.
The combination of these software assets -- which includes HPE's Application Delivery Management, Big Data, Enterprise Security, Information Management & Governance and IT Operations Management businesses -- and Micro Focus' highly complementary portfolio will create one of the world's largest pure-play software companies. The new company will have the global footprint, agility and financial strength to drive software innovation across a comprehensive array of products. At the same time, the move enables a standalone HPE to realize its vision of being the industry's leading provider of hybrid IT, built on the secure, next-generation, software-defined infrastructure that will run customers' data centers today, bridge them to multi-cloud environments tomorrow, and enable the emerging intelligent edge that will power campus, branch and IoT applications for decades to come.
"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, President and Chief Executive Officer of HPE.
Partnership with SUSE
In addition, HPE and Micro Focus announced plans for a commercial partnership that will name SUSE as HPE's preferred Linux partner and will bring together HPE's Helion OpenStack and Stackato solutions with SUSE's OpenStack expertise to provide best-in-class enterprise-grade hybrid cloud offerings for HPE customers.
Positioning HPE for the Future
With approximately $28 billion in annual revenue, the future HPE will have significant scale, a diversified, world-class portfolio and a global footprint to meet the evolving needs of its customers and partners.
The company will be an industry leader in delivering secure hybrid IT solutions, leveraging its world-class portfolio of software-defined servers, storage, networking and converged infrastructure. HPE's newly created Software-Defined and Cloud business will build upon key software assets like HPE OneView and the Helion Cloud platform to deliver software-defined Hybrid IT solutions like Synergy -- HPE's composable infrastructure offering that enables customers to operate their workloads with unprecedented speed and agility.
HPE will also redefine IT at the edge with leading campus, mobility and IoT offerings. The company's "edge" solutions enable customers to quickly and securely gain insights from the growing amount of data processed outside of the data center. And through Aruba, HPE delivers the industry's leading platform to enable an innovative user and workforce experience anywhere.
Wrapped around this portfolio is HPE's world-class Technology Services capability that helps customers transform their IT environment and take advantage of opportunities in emerging areas like campus, branch and industrial IoT programs. Technology Services comprises about 22,000 service professionals and will represent approximately 25 percent of the company's revenue after the spin-off of its Enterprise Services business and non-core software assets.
"Services and Software remain key enablers of HPE's go-forward strategy," continued Whitman. "HPE will double down on the software capabilities that power and differentiate our infrastructure solutions and are critical in a cloud environment."
Creates Global Software Leader
The combination of HPE's software assets with Micro Focus is expected to create a business with annual revenues of approximately $4.5 billion. The combined company will have strong recurring revenue streams, global reach and be well diversified across product lines -- spanning IT operations, security, information management, big data analytics, cloud, open source and development. In addition, the company will have a strong go-to-market capability with nearly 4,000 salespeople worldwide, and deep R&D resources to deliver best-in-class solutions to customers and partners.
Micro Focus' proven track record of managing both growing and mature software assets will ensure higher levels of investment in growth areas like big data analytics and security, while maintaining a stable platform for mission-critical software products that customers rely on. With this approach, each product line will have a clear and important role in overall company performance, and employees will have a high level of clarity on the strategy for their organization.
"We believe that the software assets that will be a part of this combination will bring better value to both our customers and shareholders as part of a more focused software company committed to growing these businesses on a stand-alone basis," added Whitman.
Micro Focus expects to improve the margin on HPE's software assets by approximately 20 percentage points by the end of the third full financial year following the closing of the transaction, while also investing in key growth areas like big data and security. As owners of 50.1 percent of the combined company, HPE shareholders will share in the value of these operational improvements, as well as future growth of earnings.
The combined company will be led by Kevin Loosemore, Executive Chairman of Micro Focus, and Mike Phillips will serve as Chief Financial Officer.
"The time is right for consolidation in the infrastructure software market and this proposed merger will create one of the leading players in this space," said Loosemore. "The combined organization will benefit from strong positions in a number of key segments, further enhancing our customers' ability to leverage both prior and new IT investments to exploit the latest industry innovations such as mobility, cloud, the Internet of Things, Big Data and Analytics. The transaction reinforces Micro Focus' established acquisition strategy and our focus on long term customer value through the disciplined and efficient management of mature infrastructure software products."
Transaction Valued at $8.8 Billion
At the completion of the transaction, currently expected to occur by the second half of HPE's fiscal year 2017, HPE shareholders will own American Depositary Shares ("ADSs") representing 50.1% of the equity of the new combined company (which will continue under the name Micro Focus) on a fully diluted basis. This equity stake in Micro Focus is valued at approximately $6.3 billion based on the closing price of Micro Focus shares as of market close on September 5, 2016. HPE will also receive a $2.5 billion cash payment prior to the completion of the merger, resulting in total consideration to HPE and its shareholders of approximately $8.8 billion. The transaction is expected to be tax-free to HPE.
An HPE senior executive will serve on the board of directors of the combined company. In addition, HPE will nominate 50% of the independent directors to the combined company's board.
To recognize the $8.8 billion of value and unlock a more attractive financial profile for HPE going forward, HPE expects to incur one-time after-tax separation costs of approximately $700 million, with the vast majority occurring in fiscal year 2017. The transaction is subject to customary closing conditions, including the receipt of required regulatory approvals and the approval of the transaction by Micro Focus' shareholders.
Última edição por 5ms; 07-09-2016 às 23:11.
07-09-2016, 23:11 #4
Hybrid IT focusKatherine Noyes
IDG News Service
Sep 7, 2016 5:02 PM
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.
"We really see our growth opportunity around hybrid IT," he explained. "The whole world is talking about the public cloud growing, but not that many people are noticing that the private cloud is growing at double-digit rates as well. That's a huge opportunity for us."
HPE is also in the process of "doubling down to deliver a new stack of modern, multi-cloud infrastructure-as-a-service software," he added, "building on IaaS things today like OpenStack, but expanding to the Dockers, the Mesospheres and the Turbonomics of the world."
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 its split from HP's PC and printer group last year, so honing its focus could be a good thing for its future.
"I'm actually relieved HPE is getting back to what everyone knows they do well, and that's infrastructure and platforms," said Patrick Moorhead, president and principal analyst with Moor Insights & Strategy.
"'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.
HPE's Synergy Composable Infrastructure, for example, is one where HPE "can change the game, not just participate," he said.
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 announced financial results for its third quarter of fiscal 2016, including net revenue of $12.2 billion, which was down 6 percent from the prior-year period. Earnings per share, however, beat previous outlook at 49 cents per share.