UK technology firm Micro Focus will buy Hewlett Packard Enterprise (HPE) in a deal worth $8.8bn (£6.6bn).
The acquisition of HPE by Micro Focus, one of the UK’s biggest tech companies with annual revenues of £3.4bn, will promote the UK firm into the FTSE 100, replacing chip design firm ARM, which has been acquired by Japan’s Softbank.
The new combined entity will have a stock market value of over £10bn, a similar size to that of broadcaster ITV and energy firm Centrica.
Kevin Loosemore, Micro Focus executive chairman, said:
“Today’s announcement marks another significant milestone for Micro Focus.”
Hewlett Packard spun off its software business as HPE in 2014, shortly after the ill-fated acquisition of British tech firm Autonomy for $11.7 billion (£7.4 billion) in 2011.
HPE is the latest acquisition for Berkshire-based Micro Focus, which has previously acquired Attachmate in 2014 for $1.2bn and Serena Software for $540m earlier this year.
Shares in Micro Focus soared 18% upon news of the deal.
