Micro Focus shares jump 90% on news of £5bn Canadian takeover deal | Micro Focus International

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One of the few remaining British technology companies in London is set to become foreign-owned after a Canadian software provider announced a £5bn deal on Thursday night. It will be taken over by OpenText in a deal expected to be completed in the first quarter of 2023. OpenText, which is one of the world’s largest software companies and is listed on the US Nasdaq, has offered 532p per share for Micro Focus , which means Wednesday’s share price is 98% higher.


OpenText chief Mark Barrenechea said the deal, the latest in which a British company has been bought by foreign interests in recent years, would create “one of the largest software and cloud companies in the world with a big marquee customer base, global scale and comprehensive market access”. The news nearly doubled the price of Micro Focus’ FTSE 250-listed shares, which were trading at around 512p on Friday morning.

It helped reverse a decline in Micro Focus US shares, which have fallen following its £6.3 billion takeover of Hewlett Packard Enterprise’s software division in 2017. Micro Focus struggled to integrate the business, which was larger than itself and was the largest acquisition in its history. Revenues subsequently declined, and the company was forced to issue a series of profit warnings in the following years. Micro Focus President Greg Lock , said that the offer d ‘acquisition of OpenText’ demonstrates the significant progress we have made in transforming the business.

OpenText not only shares our values, but will provide new opportunities for both our customers and employees. “The deal is the latest in which a UK company has been taken over by foreign interests in recent years, with major brands including supermarket Morrisons, security firm G4S, and infrastructure group John Laing now owned by US firms Cyber ​​security firm Darktrace confirmed last week that it was in early-stage acquisition talks with US private equity firm Thoma Bravo, although it did not no firm offer has been made. Days later it emerged that French conglomerate Schneider Electric was considering a takeover of British software developer Aveva, a move that would involve buying 40% of the company. no longer owner