LONDON, May 9 (Reuters) - Micro Focus Intl said software revenue at Hewlett-Packard Enterprise, the U.S. company it is buying, fell around 10 percent in the last quarter, which it said was disappointing but not unusual given the degree of change in the business.
The British company struck a deal to buy HPE’s software business for $8.8 billion in September, catapulting it into the top tier of European tech companies.
Executive chairman Kevin Loosemore said he was encouraged by the early progress that HPE Software’s management were making on implementing operational efficiencies.
“Whilst the short term decline in licence is disappointing it is not unusual given the level of change being undertaken,” he said on Tuesday.
Micro Focus said it would convene a general meeting to request approval of the transaction shortly, and shareholders will also be asked to approve a $500 million return of value, approximately $2.09 per share.
Micro Focus said its revenue for the year to end-April was expected to be within its guidance of flat to down 2 percent on a pro-forma constant currency basis. (Reporting by Paul Sandle; Editing by Alistair Smout)