In a move reminiscent of the departure of its consulting wing to CSC, Hewlett Packard Enterprise (HPE) announced a complex transaction involving a reverse takeover of legacy software specialist Micro Focus PLC of the UK. They described it as a spin-off and merger. First they will create a spin-out company named Seattle SpinCo Inc comprising all the many enterprise software assets HP has accumulated over the years. That company will then merge with Micro Focus, who will pay for the transaction with $2.5 billion cash and a 50.1% equity stake. The result, expected to complete late in 2017, will be a company half owned and with a majoority of the board selected by HPE but still run by Micro Focus’ existing management and headquartered in the UK. Continue reading →