On Friday, shares of Hewlett Packard Enterprise Co. (HPE - Free Report) are plummeting, down over 20% in midday trading after the company announced the spin-off of almost all of its software business.
Hewlett Packard Enterprise’s software business, which includes the popular and widely used security platform ArcSight, has now been merged with British software company Micro Focus International, which trades on the London Stock Exchange under the ticker “MCRO.”
“With the completion of this transaction, HPE has achieved a major milestone in becoming a stronger, more focused company, purpose-built to compete and win in today’s market,” said Meg Whitman, Chief Executive Officer of HPE. “And, this transaction will deliver approximately $8.8 billion to HPE and its stockholders.”
Today’s deal also marks the end of the company’s 2011 acquisition of British firm Autonomy, which Hewlett scooped up for $11 billion. At the time, the acquisition was to help push HPE forward as an enterprise software industry leader, but the deal was heavily criticized, and according to Reuters, Hewlett ended up taking an $8.8 billion writedown on it.
Hewlett’s next step, though, will be to quickly build up its software division, especially for its mixed data center areas. The company has also had to adjust to the change in enterprise software, as cloud computing services offered from competitors like Amazon (AMZN - Free Report) and Microsoft (MSFT - Free Report) dominate the market.
HPE was created in 2015, along with HP Inc. (HPQ - Free Report) , as a spin-off from the Hewlett Packard Company. The company currently sits at a #3 (Hold) on the Zacks Rank, with a VGM score of ‘C.’
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Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
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On Friday, shares of Hewlett Packard Enterprise Co. (HPE - Free Report) are plummeting, down over 20% in midday trading after the company announced the spin-off of almost all of its software business.
Hewlett Packard Enterprise’s software business, which includes the popular and widely used security platform ArcSight, has now been merged with British software company Micro Focus International, which trades on the London Stock Exchange under the ticker “MCRO.”
“With the completion of this transaction, HPE has achieved a major milestone in becoming a stronger, more focused company, purpose-built to compete and win in today’s market,” said Meg Whitman, Chief Executive Officer of HPE. “And, this transaction will deliver approximately $8.8 billion to HPE and its stockholders.”
Today’s deal also marks the end of the company’s 2011 acquisition of British firm Autonomy, which Hewlett scooped up for $11 billion. At the time, the acquisition was to help push HPE forward as an enterprise software industry leader, but the deal was heavily criticized, and according to Reuters, Hewlett ended up taking an $8.8 billion writedown on it.
Hewlett’s next step, though, will be to quickly build up its software division, especially for its mixed data center areas. The company has also had to adjust to the change in enterprise software, as cloud computing services offered from competitors like Amazon (AMZN - Free Report) and Microsoft (MSFT - Free Report) dominate the market.
HPE was created in 2015, along with HP Inc. (HPQ - Free Report) , as a spin-off from the Hewlett Packard Company. The company currently sits at a #3 (Hold) on the Zacks Rank, with a VGM score of ‘C.’
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020. Click here for the 6 trades >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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