HP Enterprise (HPE) Stock Gains on Potential Software Division Sale

NEW YORK (TheStreet) -- Shares of Hewlett Packard Enterprise  (HPE) were up in mid-afternoon trading on Thursday as the Palo Alto, CA-based technology infrastructure company is in discussions to sell its software division to buyout firm Thoma Bravo in a deal that it hopes could bring in between $8 billion and $10 billion, sources told Reuters. 

The company has received bids of as much as $7.5 billion for the division, with Thoma Bravo making the higher offer among private equity firms so far, Reuters reports. 

Other private equity firms including Vista Equity Partners Management, Carlyle Group and TPG Capital have reportedly made offers as well. 

The division generated $3.6 billion in revenue in 2015, down from $3.9 billion in 2014. A sale would come as CEO Meg Whitman attempts to narrow HP Enterprise's focus to networking, storage, data centers and similar services following its split from computer and printer maker HP (HPQ) last year, Reuters notes.

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