Micro Focus International

Micro Focus International. It is a British multinational software company and one of the world's largest providers of enterprise software, focusing on helping customers modernize and manage their IT infrastructure. Headquartered in Newbury, Berkshire, the company's portfolio spans IT operations management, application delivery management, security software, and COBOL development tools. Following a significant merger with the software assets of Hewlett Packard Enterprise in 2017, it became a major player before being acquired and taken private by OpenText in 2023.

History

The company was founded in 1976 in Weybridge, Surrey, by Brian Reynolds and Paul O'Gorman, initially focusing on microcomputer products. It gained prominence in the 1980s with its COBOL development tools, notably Micro Focus COBOL, which allowed legacy mainframe applications to run on personal computers. A key early milestone was its initial public offering on the London Stock Exchange in 1987. Throughout the 1990s and 2000s, it expanded through strategic acquisitions, including Intersolv and Merant, solidifying its position in application lifecycle management. A transformative period began with the 2009 merger with Borland Software Corporation, followed by the landmark merger with the software division of Hewlett Packard Enterprise in 2017, creating one of the largest pure-play software firms.

Products and services

Its portfolio is organized around four core areas: IT operations management, application delivery management, security software, and application modernization. Key product lines include the Operations Bridge suite for monitoring hybrid IT infrastructure, the ALM Octane platform for DevOps, and the Fortify application security suite. The company is also renowned for its Visual COBOL development environment and Enterprise Analyzer tools, which support modernizing applications built on legacy systems like IBM mainframes. These products are used across major industries including banking, insurance, government, and telecommunications to manage complex digital transformation initiatives.

Acquisitions and mergers

Growth has been heavily driven by an aggressive mergers and acquisitions strategy. Significant transactions include the purchase of Acucorp in 2006, expanding its COBOL tools, and the merger with Borland Software Corporation in 2009, adding application lifecycle management capabilities. The 2014 acquisition of Attachmate, which owned Novell and SUSE, significantly broadened its portfolio in IT management and Linux distribution, though SUSE was later spun off. The most defining deal was the reverse takeover of the software assets of Hewlett Packard Enterprise in 2017, integrating major brands like ArcSight, Fortify, and Vertica. Later acquisitions included Interset for security analytics and Bristol Technology for application programming interface management.

Financial performance

As a publicly traded company on the London Stock Exchange and a constituent of the FTSE 100 Index, its financial results were closely watched. Revenue saw substantial increases following major acquisitions, notably after the Hewlett Packard Enterprise merger, with reported revenue exceeding £3 billion in 2018. However, the company faced challenges integrating the large HPE Software portfolio, leading to profit warnings and a significant decline in its market capitalization. In 2022, it reported revenue of £2.7 billion. This period of financial volatility and strategic review culminated in the company being acquired by Canadian software firm OpenText in a deal valued at approximately £5.1 billion, announced in 2022 and completed in 2023.

Corporate affairs

The company was headquartered at Laurie House in Newbury, Berkshire, with major operational sites in the United States, India, and various European countries. Key leadership figures included Chief Executive Officer Stephen Murdoch and Chief Financial Officer Greg Lock. It maintained a significant partnership ecosystem with technology giants like Amazon Web Services, Microsoft Azure, and Google Cloud Platform. The acquisition by OpenText marked the end of its tenure as an independent public company, with its extensive product lines being integrated into OpenText's broader information management portfolio. The company also engaged with various industry standards bodies and was a participant in initiatives like the Open Source Security Foundation.

Category:Software companies of the United Kingdom Category:Companies based in Berkshire Category:Companies listed on the London Stock Exchange