Digital Safe Announcement

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1 February 2022

Micro Focus International plc

Completion of sale of the Digital Safe Business

Micro Focus International plc ("Micro Focus" or "the Group", LSE: MCRO.L, NYSE: MFGP), the international software product group, is pleased to announce the completion of the disposal (the "Disposal") of its Archiving and Risk Management portfolio (the "Digital Safe Business") to Smarsh Inc. ("Smarsh").

The proposed sale of the Digital Safe Business was first announced on 03 November 2021. The Disposal has now completed, in line with the previously communicated timeframe and the proceeds have been received (subject to customary completion accounts adjustments based on net debt and working capital).

It is the intention of the Board to use the net proceeds of the Disposal, estimated at $335m net of fees, taxation and separation costs to reduce gross debt. In addition, as part of the transaction, lease obligations totalling approximately $40m at 31 October 2021 will transfer to Smarsh further reducing the Group's net debt.

Stephen Murdoch, CEO Micro Focus, commented: "We are pleased to have completed the Disposal of Digital Safe in line with our original timetable. This Disposal demonstrates the value within of our broad portfolio and is a clear example of how our approach to customer-centric innovation can lead to value creation over the long term.

Archiving and Risk Management is changing rapidly and becoming an increasingly specialised area. We believe through this combination with Smarsh, a leading innovator in this area, our Digital Safe customers and employees will see significant benefits and be better served for the long term. I would like to thank the Digital Safe team for their contribution to Micro Focus and to wish them continued success." 

Enquiries:

Micro Focus Tel: +44 (0)1635 32646

Stephen Murdoch, CEO [email protected]

Matt Ashley, CFO

Ben Donnelly, Head of Investor Relations

Brunswick Tel: +44 (0) 20 7404 5959

Sarah West [email protected]

Jonathan Glass

Notes to Editors:

About Micro Focus

Micro Focus (LSE: MCRO.L, NYSE: MFGP) is a global enterprise software company supporting the technology needs and challenges of the Global 2000. Our solutions help organizations leverage existing IT investments, enterprise applications and emerging technologies to address complex, rapidly evolving business requirements while protecting corporate information at all times. Our product portfolios are Security, IT Operations Management, Application Delivery Management, Information Management & Governance and Application Modernization & Connectivity. For more information, visit: www.microfocus.com

About Smarsh

Smarsh is a recognized global leader in electronic communications archiving solutions for regulated organizations. It provides innovative capture, archiving, e-discovery, and supervision solutions across the industry's widest breadth of communication channels.

Scalable for organizations of all sizes, the Smarsh platform enables businesses to embrace innovation and manage risk. Smarsh customers can strategically future-proof as new communication channels are adopted, and can realize more insight and value from the data in their archive. Customers strengthen their compliance and e-discovery initiatives, and benefit from the productive use of email, social media, mobile/text messaging, instant messaging and collaboration, web, and voice channels.

For more information, visit www.smarsh.com.

LEI: 213800F8E4X648142844