Hewlett Packard Enterprise (HPE) completed an $8.8 billion deal to spin off its non-core software business.
Under the transaction, HPE’s software business, Seattle SpinCo, merged with United Kingdom-based Micro Focus making the software company the U.K.’s largest tech firm. Micro Focus is now the seventh largest pure-play enterprise software company in the world, according to a company statement.
It’s important to note HPE didn’t sell all of its software assets to Micro Focus. HPE still owns its Oneview hybrid IT management platform, its Infosight predictive analytics software, and its Aruba networking portfolio, among others.
HPE first announced the deal a year ago as part of its plan to streamline its business segments. The company also spun off its Enterprise Services in a similar deal that saw it merge with CSC.
Other slimming-down moves by HPE include the sale of TippingPoint and a deal that merged some of HPE’s China-based businesses with Tsinghua Holdings to form the new H3C.
In the deal with Micro Focus, HPE “achieved a major milestone in becoming a stronger, more focused company,” HPE CEO Meg Whitman said in a statement.
Software-defined infrastructure remains core to HPE’s strategy, according to the company. This includes three parts: making hybrid IT simple through software-defined offerings; powering the “intelligent edge;” and flexible consumption models.