It’s better to be small than to fade away.
After months of rumors, Hewlett Packard Enterprise confirmed on Wednesday that it would spin off its software business to U.K. software maker Micro Focus.
Under the terms of the $8.8 billion deal, HPE shareholders would own 50.1% of the new company and HPE would get a $2.5 billion cash payment. It also plans to take a $700 million charge.
The deal will make HPE “an even stronger company, well positioned to the future,” said HPE CEO Meg Whitman during a call with analysts.
