Hewlett Packard Enterprise Co. will spin off software units in an $8.8 billion deal that it says will help it focus on faster-growing businesses.
The Palo Alto, California, company said Wednesday that the spun-off software businesses — they include big data, security for big companies and IT operations management units — will merge with U.K. software company Micro Focus International PLC.
Hewlett Packard Enterprise will get a $2.5 billion cash payment and a 50.1 percent stake in the combined company.
The deal requires antitrust approval and is expected to close in the third quarter.
Hewlett-Packard Co. last year split into two companies, with Hewlett Packard Enterprise selling commercial tech products and services, while HP Inc. focuses on personal computers and printers.