Micro Focus
Acquired7 known investors
OpenText provides information management software that helps enterprises and small and medium-sized businesses organize and manage data using cloud, security, and AI tools. It serves industries including healthcare, energy, manufacturing, and the public sector.
Also known as Micro Focus | OpenText Β· Micro Focus International plc
Founders & leadership
Investors Β· 7
Company profile
researched Aug 2026Micro Focus International plc was a British multinational enterprise software and information technology company headquartered in Newbury, Berkshire, England. Founded in 1976, it built its original business around COBOL development tooling and expanded, largely through acquisition, into application modernization and delivery, cybersecurity and identity, IT operations management, host connectivity and terminal emulation, information archiving and governance, and AI, analytics and big data. Its published product capability catalogue spans areas such as COBOL and mainframe application development, application lifecycle management and testing, DevOps/DevSecOps, identity and access management, data protection and encryption, IT service management and AIOps.
The company was listed on the London Stock Exchange (MCRO) from 2005 and on the New York Stock Exchange (MFGP) from 2017 until its acquisition by the Canadian software firm OpenText, which closed on 31 January 2023. Subsidiaries included NetIQ and Serena Software. Following the acquisition, Micro Focus products were folded into OpenText's information management portfolio across Cybersecurity, IT/Digital Operations Management, Application Delivery and Modernization, and AI & Analytics; OpenText subsequently announced in November 2023 the divestiture of its Application Modernization and Connectivity division β including the COBOL business that formed the original Micro Focus β to Rocket Software, completing on 1 May 2024.
Founding story
Micro Focus was founded in 1976 by Brian Reynolds in Notting Hill, London. In 1981 it became the first company to win the Queen's Award for Industry solely for developing a software product, CIS COBOL, a standards-compliant COBOL implementation for microcomputers.
Business model
Micro Focus licensed and supported enterprise software products, supplemented by IT consultancy and services, selling to large organizations across a broad portfolio spanning application modernization, security, IT operations and analytics.
Traction
Reported revenue of US$2,899.9 million for 2021, with an operating loss of US$265.6 million and a net loss of US$424.4 million; approximately 11,000 employees in 2022 across 48 countries.
Latest developments
The OpenText acquisition closed on 31 January 2023 for approximately $5.8 billion inclusive of cash and debt, funded with $4.6 billion of new debt, $1.3 billion in cash and a $600 million revolving credit facility draw, with $400 million of targeted cost synergies and an approximately 8% workforce reduction. In November 2023 OpenText announced the divestiture of its Application Modernization and Connectivity division, including the original Micro Focus COBOL business, to Rocket Software; the deal completed on 1 May 2024.
βΈFull profile β market position, technology, go-to-market, geography, history, risks & controversies
Market position
One of the larger legacy enterprise software vendors, with reported 2021 revenue of US$2,899.9 million and around 11,000 employees, positioned around bridging existing and emerging technologies in hybrid IT environments; OpenText valued the business at 2.3x trailing twelve-month revenue at closing.
Technology
The portfolio covered COBOL compilers and mainframe application development and rehosting tools, application lifecycle management and automated/performance testing, DevOps and application release automation, identity and access management and advanced authentication, application and data security, encryption and archiving, host access and terminal emulation, IT service management and AIOps, and big data analytics and search.
Go-to-market
Micro Focus sold directly and through a partner ecosystem, operating regional websites and support organizations across the Americas, EMEA and Asia-Pacific, with partner and academic programs supporting its products.
Large enterprises and public sector organizations with hybrid IT estates, including customers in banking and financial services, healthcare, energy, education and government.
Geography
Headquartered in Newbury, Berkshire, United Kingdom, with operations spanning the Americas, Europe, the Middle East and Africa and Asia-Pacific; prior to joining OpenText the company reported employees across 48 countries.
History
After acquiring Intersolv in 1998 for US$534 million, the combined business was renamed Merant; Micro Focus was demerged from Merant in 2001 with help from Golden Gate Capital Partners and resumed its original name, listing on the London Stock Exchange in 2005. A long series of acquisitions followed: Acucorp (2007), NetManage (2008, US$73.3 million), Liant Software (2008), Borland and Compuware's Quality Solutions business (2009), the Orbix/Orbacus/Artix CORBA product lines from Progress Software (2013), The Attachmate Group including Attachmate, NetIQ, Novell and SUSE (announced 2014, US$1.2 billion in shares), Authasas (2015), Serena Software (completed May 2016, valued at US$540 million), GWAVA (2016), Hewlett Packard Enterprise's software segment (merger completed 1 September 2017), Interset (2019) and ATAR Labs (2020, $8 million). In March 2018 shares fell 55% to 849p after a revenue warning and CEO Chris Hsu resigned. Micro Focus agreed in July 2018 to sell its SUSE business to EQT for $2.535 billion. OpenText announced its acquisition of Micro Focus in August 2022 and completed it on 31 January 2023.
Risks & controversies
Micro Focus recorded operating and net losses in 2021 and had shown financial difficulty for several years. In March 2018 its shares fell 55% after it warned of a sharp revenue decline linked to system consolidation problems following the HPE software merger, and its CEO resigned. In 2011 the company alleged that the New South Wales Police Force and other agencies had installed 16,500 copies of its ViewNow software against 6,500 licences, claiming up to A$12 million in damages; the matter was settled out of court in 2012 for an undisclosed sum. Following the OpenText acquisition, the combined company announced an approximately 8% workforce reduction.
Compiled by commissioned research from 8 cited public sources β announcements, filings, and press listed under research sources below.
Key figures
latest reportedCompany-reported or press-reported figures, each dated to when it was claimed β not independently audited.
Founder mafia
2 people who came through Micro Focus went on to found or lead other companies.
Timeline Β· 19
launches, deals, and filingsThe transaction completed on 1 May 2024.
OpenText closed its acquisition of Micro Focus International plc for a total purchase price of approximately $5.8 billion inclusive of cash and debt, equal to 2.3x trailing twelve-month revenue and 6.7x TTM adjusted EBITDA. The deal was funded by $4.6 billion in new debt, $1.3 billion in cash and a $600 million draw on OpenText's revolving credit facility, with $400 million of cost synergies and an approximately 8% workforce reduction planned. The acquisition was announced in August 2022 and approved by the court on 27 January 2023.
$5.8B source β
$8M source β
$2.5B source β
$8.8B source β
$540M source β
$1.2B source β
$73.3M source β
$534M source β
Dated company events from announcements, filings, and press; legal rows summarize public dockets and regulator releases.
In the news
βΈResearch sources Β· 8
primary sources listed
- Micro Focusmicrofocus.com Β· web
8 public sources were cited for this profile; the first-party ones are listed here.
Frequently asked questions
- What does Micro Focus do?
- British enterprise software firm behind COBOL, application modernization, security and IT operations tools, acquired by OpenText in 2023.
- Who are Micro Focus's investors?
- Micro Focus's investors include Harmonic Growth Partners, New Enterprise Associates (NEA), Partners for Growth, Partners for Growth (PFG), The Argentum Group, Toba Capital, Top Corner Capital.