2nd Jul 2018 08:14
LONDON (Alliance News) - FTSE 100-listed infrastructure software business Micro Focus International PLC said Monday it has agreed to sell its SUSE business segment to Blitz 18-679, a subsidiary of Swedish private equity group EQT Partners for USD2.54 billion.
The SUSE business develops, markets and sources an enterprise grade Linux operating systems well as open source software-defined infrastructure.
Proceeds from the sale will go towards paying any tax coming from the transaction, repaying part of the group's debt, general corporate purposes and shareholder returns.
The disposal is expected to be completed in the first quarter of 2019.
"Micro Focus started working with the SUSE Business in November 2014, following our acquisition of The Attachmate Group. At the time of the acquisition, the SUSE Business represented just over a fifth of the revenues of The Attachmate Group, which we acquired for USD2.35 billion," said Micro Focus Executive Chairman Kevin Loosemore.
"We are therefore delighted that this investment has generated substantial shareholder value and provided further vindication of our portfolio approach to software management. The transaction delivers compelling value for Micro Focus and provides the SUSE Business with a strong, long-term investor to support it in its next phase of growth," Lossemore added.
Shares in Micro Focus were up 4.9% at 1,388.00 pence on Monday. Micro Focus will publish its interim results on Wednesday next week.
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