UK tech firm swoops on HP software unit in £6.6bn deal

UK tech firm Micro Focus is buying the software business of a division of Hewlett-Packard for $8.8bn (£6.6bn).

The deal makes Micro Focus one of the UK’s biggest tech companies, with total annual revenues of $4.5bn (£3.4bn).

It is acquiring assets from Hewlett Packard Enterprise (HPE), including former UK tech champion Autonomy which HP bought in an ill-fated deal in 2011.

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 Berkshire, England, from being a relatively small player to being worth over £5bn, with revenues doubling in 2015.

Shares in Micro Focus closed 14.5% higher at £22.38 after jumping as much as 21%, making it the biggest riser on the FTSE 100.

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