Micro Focus forms public sector business as HPE deal closes

Hewlett Packard Enterprise has success spun out and merged its software business with U.K.-based Micro Focus, which has now created a new U.S. government subsidiary.

Hewlett Packard Enterprise and Micro Focus have completed the $8.8 billion merger of Micro Focus with HPE’s software business earlier this month and now launched a U.S. government business.

With the close of the deal, Micro Focus stood up a U.S. public sector business, Micro Focus Government Solutions. Robert J. Makheja, will serve as president and CEO.

The government business will serve federal, state, local and education markets. It is set up as an independent subsidiary of the U.K.-based Micro Focus.

The business will focus on selling to the U.S. government as well as working with resellers, systems integrators and others who support the public sector, the company said.

The combination of HPE Software and Micro Focus is another so-called spin-merger, where one company divests a business by merging it into another business. HPE did this with Computer Sciences Corp. and its enterprise services business to create DXC Technologies.

HPE shareholder received 50.1 percent of the stock in the new Micro Focus.

The U.S. government business’s software offerings are organized around application delivery management, IT operations management, cybersecurity, information governance, cloud, Linux and open source products. The company supports those offerings along with a big data analytics capabilities.