Hewlett Packard Enterprise (HPE) is considering selling off its $3.6bn software business in a private equity deal with Thoma Bravo that could reach $10bn, Reuters reports.
At this point in the proceedings, Thoma Bravo has reportedly entered the highest bid at $8bn - $10bn, with other private equity firms also involved in the buyout talks said to include Vista Equity, Carlyle and TPG Capital.
Other offers for HPE's software portfolio, which most prominently features its ArcSight cyber security business, Autonomy and Vertica operations, have approached $7.5bn in a sales process managed by investment bank Goldman Sachs, sources told Reuters.
A deal with Thoma Bravo isn't certain and HPE could sell to another bidder it finds more suitable or the vendor might decide to divest itself of certain software assets rather than its entire portfolio, the report said.
HPE might prefer a buyer with other software assets, which could give Thoma Bravo an advantage in the negotiations considering it already owns Compuware, Reuters noted.
Word first surfaced in July that HPE was mulling offloading some of its software assets.
Shedding its software unit would be consistent with HPE's oft-repeated strategy to concentrate its efforts on building out its cloud, networking, server and storage businesses.
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