Micro Focus

Micro Focus was a British multinational enterprise software and information-technology company founded in 1976 by Brian Reynolds in Notting Hill, London. It became one of the most prominent commercial suppliers of COBOL development and runtime technology for microcomputers and later built a much broader portfolio through acquisitions. Its products were aimed at organizations that needed to maintain, modernize, secure, test, and operate large estates of business applications, including systems running on mainframes, Unix, Windows, and distributed infrastructure. The company’s early importance came from CIS COBOL, a standards-compliant COBOL implementation for microcomputers. In 1981, Micro Focus became the first company to receive the Queen’s Award for Industry specifically for the development of a software product. COBOL remained an important part of the company’s identity, but its scope expanded substantially after the business acquired or combined with other software vendors. The 1998 acquisition of Intersolv and the purchase of XDB Systems temporarily placed the business within the Merant structure. Micro Focus was separated from Merant in 2001 and subsequently returned to the public markets through a London Stock Exchange listing in 2005. During the 2000s and 2010s, Micro Focus assembled a wide range of enterprise technologies. Acucorp and Liant added COBOL, PL/I, and related application-development products; NetManage and Attachmate strengthened terminal emulation and connectivity; Borland and Serena expanded application lifecycle management, testing, DevOps, and software delivery; and the Attachmate transaction brought the Novell, NetIQ, and SUSE product families, including ownership of the Unix operating system. In 2017, Micro Focus completed the combination of its business with Hewlett Packard Enterprise’s software segment, greatly increasing its scale and customer base. The enlarged portfolio was organized around application delivery, hybrid IT management, security, information governance, mainframe and COBOL modernization, and digital transformation. The company primarily served large enterprises, public-sector bodies, financial institutions, telecommunications providers, and other organizations dependent on long-lived business systems. Its strategy emphasized enabling customers to preserve existing investments while connecting or gradually modernizing established applications rather than replacing every legacy system outright. Micro Focus experienced significant strategic and financial pressure after the HPE software combination. In March 2018, the company warned that revenue would decline sharply; its shares fell substantially and chief executive Chris Hsu resigned. Micro Focus later sold SUSE to EQT for approximately US$2.535 billion and continued to dispose of or consolidate parts of its portfolio. In 2020 it acquired Turkish cybersecurity company ATAR Labs, adding another element to its security offering. OpenText announced an agreement to acquire Micro Focus in August 2022 in a transaction valued at approximately US$6 billion. The transaction received court approval in January 2023 and completed on 31 January 2023. Micro Focus therefore ceased to operate as an independent listed company and became part of OpenText. In 2023, OpenText announced the divestiture of its Application Modernization and Connectivity division to Rocket Software; that transaction completed in May 2024 and included the COBOL business associated with Micro Focus’s original product heritage.

Micro Focus was established in 1976 by Brian Reynolds in Notting Hill, London. Its early business centered on bringing COBOL development to microcomputers. The company’s CIS COBOL product was designed as a standards-compliant implementation and earned the Queen’s Award for Industry in 1981, making Micro Focus the first company recognized by that award solely for developing a software product. The business expanded through acquisitions and corporate reorganizations. In 1998 it acquired Intersolv, an applications-enablement company, for approximately US$534 million, and also acquired XDB Systems. The combined operation became associated with Merant. In 2001, the Micro Focus business was separated from Merant with assistance from Golden Gate Capital Partners and resumed its earlier identity. It listed on the London Stock Exchange in 2005. Micro Focus then broadened its COBOL and enterprise-software capabilities. Acucorp was acquired in 2007, bringing ACUCOBOL-GT. NetManage and Liant Software followed in 2008, adding connectivity, RM/COBOL, and PL/I technologies. In 2009, Micro Focus acquired Borland and the Quality Solutions portion of Compuware, strengthening its application lifecycle management and testing activities. It purchased the Orbix, Orbacus, and Artix product lines from Progress Software in 2013, and acquired Authasas in 2015 for authentication middleware. The 2014 acquisition of The Attachmate Group was a major expansion. It brought the Attachmate, NetIQ, Novell, and SUSE product families into the company and made Micro Focus the owner of Unix. Micro Focus announced the Serena Software acquisition in 2016 and completed it later that year. It also announced a combination with Hewlett Packard Enterprise’s software business in 2016; the transaction completed in September 2017 and substantially increased the company’s scale. The enlarged group subsequently faced integration and performance challenges. In March 2018, Micro Focus warned that revenue would fall sharply. Its share price declined heavily and chief executive Chris Hsu resigned. The company sold SUSE to EQT in 2018 and later acquired ATAR Labs in 2020. These actions reflected an effort to simplify the portfolio while retaining businesses associated with application modernization, legacy-system support, security, connectivity, and IT operations. OpenText announced its intention to acquire Micro Focus in August 2022. Following court approval, the acquisition completed on 31 January 2023. Micro Focus’s shares ceased to represent an independent listed company and its operations became part of OpenText. OpenText later announced the sale of its Application Modernization and Connectivity division to Rocket Software. Completion occurred on 1 May 2024, transferring the COBOL-centered business that traced back to Micro Focus’s founding activities.

1. 2024COBOL business transferred to Rocket Software

   OpenText completed the sale of its Application Modernization and Connectivity division to Rocket Software, including the COBOL business inherited from Micro Focus.

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2. 2023OpenText acquisition completed

   OpenText completed its acquisition of Micro Focus on 31 January, ending the company’s independent public-company status.

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3. 2017HPE software combination completed

   Micro Focus completed its combination with Hewlett Packard Enterprise’s software business.

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4. 2014Attachmate Group acquisition announced

   The transaction brought Attachmate, NetIQ, Novell, and SUSE into the group and added Unix ownership.

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5. 2005London Stock Exchange listing

   Micro Focus became listed on the London Stock Exchange.

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6. 2001Micro Focus is separated from Merant

   The business was demerged from Merant and returned to the Micro Focus identity.

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7. 1998Intersolv and XDB acquisitions

   The acquisitions expanded Micro Focus into applications enablement and relational database technology and preceded its association with Merant.

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8. 1981Queen’s Award for Industry

   Micro Focus received the award for CIS COBOL, becoming the first company to win it specifically for developing a software product.

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9. 1976Micro Focus is founded

   Brian Reynolds founded Micro Focus in Notting Hill, London, initially focusing on COBOL software for microcomputers.

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Enterprise software provider focused on preserving, connecting, securing, testing, and modernizing mission-critical applications and hybrid IT environments.

• Micro Focus COBOLCOBOL development and runtime1976

  Micro Focus COBOL was the company’s foundational product family. It provided compilers, runtime environments, development tools, and modernization support for COBOL applications running on personal computers, servers, mainframes, and distributed platforms. The portfolio was designed to let organizations maintain long-lived business systems while extending them with contemporary interfaces, deployment models, and integration technologies.

• Enterprise SuiteApplication modernization

  Enterprise Suite was a collection of tools and runtime capabilities for modernizing and deploying large COBOL applications. It supported the migration of established workloads to newer infrastructure and helped organizations expose or integrate legacy business logic with web, service-oriented, and distributed environments. The offering represented Micro Focus’s strategy of evolutionary modernization rather than wholesale replacement.

• ACUCOBOL-GTCOBOL development

  ACUCOBOL-GT originated at Acucorp and became part of Micro Focus through the 2007 acquisition. It combined a COBOL compiler and runtime with extensions for graphical user interfaces and application management. Its purpose was to help developers extend existing COBOL programs with graphical front ends and deploy them across supported computing environments.

• AttachmateEnterprise connectivity

  Attachmate products provided terminal emulation and connectivity between modern desktops or networks and established host systems. After the Attachmate acquisition, these technologies became part of Micro Focus’s broader hybrid-IT portfolio, supporting access to mainframe, Unix, and other legacy environments.

• NetIQIT operations and security

  NetIQ supplied tools for identity, security, systems management, and operational monitoring. Under Micro Focus, the products supported enterprise customers managing complex hybrid environments and provided capabilities complementary to the company’s application delivery and modernization software.

• SerenaApplication lifecycle management

  Serena products expanded Micro Focus’s application lifecycle management and software delivery capabilities. They addressed development governance, release processes, configuration, and the coordination of software changes across enterprise teams. Their addition helped Micro Focus connect legacy application modernization with broader DevOps and delivery workflows.

• BorlandSoftware development and testing

  The Borland portfolio added application development, lifecycle management, and testing technologies. Micro Focus used these products to serve development organizations responsible for quality assurance and controlled delivery of enterprise software, complementing its COBOL, mainframe, and modernization offerings.

• 2022Agree to acquisition by OpenTextM&A

  Micro Focus had faced integration and performance challenges after its expansion through acquisitions and the HPE software combination.

  What changed. The company agreed to be acquired by OpenText, subject to shareholder, regulatory, and court processes.

  Aftermath. The transaction completed in January 2023, ending Micro Focus’s independent corporate and stock-market presence.

  Announced transaction value. Approximately US$6 billion (2022)

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• 2018Sell the SUSE businessStrategy

  Following the HPE software combination and a severe revenue warning, Micro Focus moved to refocus its portfolio.

  What changed. The company agreed to sell SUSE to EQT.

  Aftermath. SUSE became independent under EQT ownership, while Micro Focus concentrated more heavily on application modernization, connectivity, security, and IT management.

  Sale consideration. US$2.535 billion (2018)

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• 2016Combine with Hewlett Packard Enterprise softwareM&A

  Micro Focus pursued scale and a larger enterprise customer base by combining with HPE’s software segment.

  What changed. The parties announced the transaction in September 2016 and completed it on 1 September 2017.

  Aftermath. The combination substantially enlarged Micro Focus’s product portfolio and organizational complexity.

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• 2014Acquire The Attachmate GroupM&A

  Micro Focus sought to broaden its enterprise software portfolio beyond COBOL and application tools.

  What changed. It announced a share-based acquisition of The Attachmate Group, bringing Attachmate, NetIQ, Novell, and SUSE into the combined company.

  Aftermath. The transaction made Micro Focus a much broader infrastructure and enterprise-software provider and gave it ownership of Unix.

  Announced transaction value. US$1.2 billion (2014)

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• 2011ViewNow licensing disputeControversy

  Micro Focus alleged that the New South Wales Police Force and other public agencies had installed more copies of its ViewNow software than their licenses permitted. The agencies disputed the interpretation of their licensing rights, including whether a site license allowed unlimited installations. The dispute proceeded through litigation and an audit before being settled out of court in 2012 for undisclosed amounts.

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• 2024OpenText divests Application Modernization and Connectivity division to Rocket Software

  The divestiture transferred the Application Modernization and Connectivity division, including the COBOL business descended from Micro Focus’s original product line, to Rocket Software.

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• 2024OpenText transfers Application Modernization and Connectivity business to Rocket Software

  OpenText completed the divestiture of its Application Modernization and Connectivity division to Rocket Software. The division included the COBOL business associated with the original Micro Focus.

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• 2023OpenText completes acquisition of Micro Focus

  The transaction completed on 31 January 2023 after court approval, ending Micro Focus’s existence as an independent listed company.

  M&AOther
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• 2022OpenText announces acquisition of Micro Focus

  OpenText announced an agreement to acquire Micro Focus in a transaction valued at approximately US$6 billion.

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• 2022OpenText agrees to acquire Micro Focus

  OpenText announced an agreement to acquire Micro Focus in a transaction valued at approximately US$6 billion.

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• 2020Micro Focus acquires ATAR Labs

  The company acquired Turkish cybersecurity provider ATAR Labs, adding security automation and related capabilities.

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• 2018Micro Focus shares fall after revenue warning

  A warning of a sharp revenue decline caused a major fall in the company’s share price, and chief executive Chris Hsu resigned.

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• 2018Micro Focus sells SUSE to EQT

  Micro Focus agreed to sell SUSE to EQT for approximately US$2.535 billion as part of a portfolio-refocusing effort.

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• 2017Micro Focus combines with Hewlett Packard Enterprise software business

  Micro Focus completed its combination with Hewlett Packard Enterprise’s software business segment, greatly expanding its enterprise software portfolio.

  M&A
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• 2016Micro Focus announces Serena Software acquisition

  Micro Focus agreed to acquire Serena Software for a reported valuation of approximately US$540 million, adding software delivery and development-management products.

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• 2016Micro Focus announces combination with HPE software

  The company announced a transaction to combine with Hewlett Packard Enterprise’s software business, completed in September 2017.

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• 2014Micro Focus acquires the Attachmate Group

  The share-based acquisition brought Attachmate, NetIQ, Novell, and SUSE into the Micro Focus group and gave it ownership of Unix.

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• 2009Micro Focus acquires Borland and Compuware Quality Solutions

  The transaction expanded Micro Focus into application lifecycle management, software testing, and development tooling.

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• 2008Micro Focus acquires NetManage

  The company acquired NetManage, strengthening its enterprise connectivity and legacy-system access business.

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• 2007Micro Focus acquires Acucorp

  Micro Focus acquired Acucorp to add ACUCOBOL-GT and related COBOL development technologies to its portfolio.

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1. Micro Focus
2. Micro Focus official website