HP Looking To Streamline Further By Selling Its Software Unit

The Wall Street Journal, citing a "person familiar with the situation," reported that HPE is looking for a buyer for its software business as part of a series of major moves to "narrow its focus." Selling its software unit would also mark the end of its association with Autonomy Corp, the British-based software maker it acquired for $11 billion in 2011. Do you have ideas for articles/interviews you'd like to see more of on Benzinga? Please email feedback@benzinga.com with your best article ideas. One person will be randomly selected to win a $20 Amazon gift card!

HPE, under its old Hewlett Packard structure, took an $8.8 billion write-down on its acquisition of Autonomy.

HPE's stock spiked higher on Thursday after a Reuters report suggested the company may have a buyer lined up — buyout firm Thoma Bravo for between $8 billion and $10 billion.

Related Link: Hewlett Packard Enterprise Investors Looking For Signs Of Stabilization

The Reuters report added that other private equity firms, including Vista Equity Partners, Carlyle Group and TPG Capital, also expressed interest in HPE's asset. However, a deal with Thoma Bravo may also include additional assets as part of a deal.

Finally, Toni Sacconaghi, an analyst at Sanford C. Bernstein, told the Wall Street Journal that it isn't surprising HPE is looking to part ways with its software business. The analyst estimated that the company spent $20 billion in developing the software business but its effort hasn't been rewarded with much growth as of late.

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