HPE has started to transfer staff from its Australian software business unit to a new entity as part of its global spin-off and merger with Micro Focus.
Some 87 HPE employees are being transferred to new company Entco Australia, according to a filing with the Fair Work Commission. Entco trades as Hewlett Packard Enterprise and was established in September 2016.
A HPE spokesperson told CRN this was part of a plan that would see 12,000 employees around the world transferred to the new merged business as part of the proposed spin-off and merger of HPE's software business and Micro Focus announced in September 2016.
The companies expect to create "a global software company dedicated to delivering and supporting enterprise software solutions". The deal remains subject to shareholder and regulatory approvals.
The merger will combine HPE's application delivery management, big data, enterprise security, information management and governance, and operations management businesses with Micro Focus' complementary portfolio.
HPE chief executive Meg Whitman wrote in a blog at the time of the announcement: "Micro Focus' approach to managing both growing and mature software assets will ensure higher levels of investment in growth areas like big data analytics and security, while maintaining a stable platform for mission-critical software products that customers rely on.
"Because of this, I believe that the software assets that will be a part of the combined company will bring better value to our customers, employees and shareholders as part of a more focused software company," Whitman said.
The combination of HPE's software assets with Micro Focus is expected to create a business with annual revenues of approximately US$4.5 billion.
Micro Focus expects to improve the margin on HPE's software assets by approximately 20 percent by the end of the third full financial year following the closing of the transaction.
HPE shareholders will own 50.1 percent of the newly combined company.
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