The tide turns ... UK firm snaps up US rival for £7bn

A BRITISH tech giant last night agreed a £7billion takeover of US rival Hewlett Packard Enterprise’s software arm, in a major boost to the UK economy.

The deal, by FTSE 100 firm Micro Focus, is one of the largest overseas takeovers by a British company for several years.

It comes just days after UK tech firm ARM Holdings was sold to Japan’s SoftBank, and reverses the trend of Britain’s tech start-ups falling into foreign hands.

Ahead of the deal Laith Khalaf, an investment expert at Hargreaves Lansdown, said: ‘If this happens it would be a major shot in the arm for the UK economy.

‘ It goes against the trend of typical transAtlantic takeovers and firmly cements Micro Focus’s place as one of the major players in the country.’

Micro Focus, based in Newbury, Berkshire, is worth around £4.4billion and has been tipped to become one of the globe’s leading technology companies. It makes sophisticated software for major firms, and has 20,000 customers across the globe.

The company has a history of snapping up rivals in Silicon Valley, having bought Serena Software in March this year for £405million. As part of the latest deal – announced on Wall Street last night – it is understood Hewlett Packard Enterprise will also take some shares in Micro Focus.

The US firm also makes software for businesses. It was formed after being split from Hewlett Packard’s main computer arm.

Founded 40 years ago, Micro Focus employs more than 4,500 staff across 80 global locations. It is one of the remaining tech jewels in Britain’s crown, after many have been sold off to foreign investors. Londonbased artificial technology firm DeepMind was sold to Google in 2014 for £300million.

And Leeds-based Premier Farnell – maker of the Raspberry Pi mini-computer – has been at the centre of a bidding war between American and Swiss firms. Experts said more deals could follow, as a fall in sterling since the Brexit vote has made UK firms more attractive to overseas investors.

Kevin Loosemore, executive chairman of Micro Focus, said his firm’s deal would create one of the industry’s ‘leading players’. ÷ Britons could soon pay less for Australian wine, in further good news following the Brexit vote. Australia’s trade minister Steven Ciobo said the cost would fall once a free trade deal with the UK is struck.

Industry body Wine Australia estimated removing EU tariffs could slash 10p to 15p off the price of a litre for UK shoppers.