Shares halved in firm that supports banks' IT systems
Shares of British technology firm Micro Focus International more than halved yesterday after Britain's leading software company ditched its CEO and cut its revenue outlook due to problems integrating assets from Hewlett Packard Enterprise.
The FTSE 100 company, which manages older software for customers including banks and airlines, also reported lower than expected licence income, wiping £4.6bn (€5.25bn) off its market value in a matter of hours.
Previously little known, Micro Focus spent $8.8bn in 2017 to buy HPE's software and join the ranks of leading European software makers.
The deal included the old Autonomy business, another British firm bought by the US company in an ill-fated deal five years earlier.
"We're finding the integration harder than we'd anticipated or planned," executive chairman Kevin Loosemore told Reuters. "(We have) no regrets at all (on the deal but) the returns clearly may be delayed slightly."
Micro Focus sells and licenses legacy software that had been neglected by previous owners, helping to extend the life of computers and avoid spending on newer systems. It competes with the likes of Germany's Software. Yesterday it said it expects revenue in the year to October 31 to fall by 6pc to 9pc. (Bloomberg)