HP Enterprise looks to offload software operations

Hewlett Packard Enterprise is putting plans in place to sell its software unit for around $10 billion, including the operations acquired in its 2011 purchase of British group Autonomy.

The company was created last year after the breakup of the Hewlett-Packard corporation, separating from the PC and printer business part of the original company.

The unit in question builds software for business management operations. HP Enterprise is thought to be keen to hold on to other software-related businesses.

According to sources at the Financial Times, a number of groups have been touted as potential buyers, including Thomas Bravo and Vista Equity. Initial bids of between $7bn-$7.5bn have been made but HP is thought to value the company at between $8bn and $10bn.

Shareholders were angered at the purchase of data analytics expert Autonomy, which was supposed to boost its IT systems, but has so far been a disastrous deal. Allegations of malpractice in its accounting, and on overvaluation of the company led to HP almost instantly regretting the acquisition.

HP Enterprise shares rose 3.2% to $22.16 in New York on Thursday, and is now a third higher than than when it was created following the split in October 2015.