HPE selling software business

Thoma Brava bids $7.5bn for HPE software, negotiations ongoing

Tags: HPMergers and acquisitions
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HPE selling software business HPE is seeking bids for its software business. (Shutterstock Images)
By  Mark Sutton Published  September 5, 2016

HPE is said to be close to a deal to sell its software division to private equity company Thoma Bravo.

According to Reuters, Thoma Bravo has bid around $7.5bn for the software business, although HPE is seeking more.

Goldman Sachs is managing the process of selling off the software arm, and has taken bids from a number of firms, with Thoma Bravo's bid being the highest. HPE is understood to be seeking $8-$10bn for the deal.

Sources close to the deal say that significant discrepancies in valuation expectations are still posing an obstacle to successful closing.

HPE's software business includes solutions for cybersecurity, big data analytics, IT operations management, cloud, backup and application delivery. The software unit generated $3.6 billion in net revenue in 2015, down from $3.9 billion in 2014.

The software division includes assets acquired as part of the $10.3bn acquisition of Autonomy in 2014, and the $4.5bn purchase of Mercury Interactive in 2006.

HPE is understood to be selling the software division to focus on networking, storage, data centers and related technology services.

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