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Micro Focus enters commercial agreement with Amazon.com web services arm

Micro Focus has also issued warrants to the tech giant’s investment arm to subscribe for up to 15mln shares at 446.6p each

Micro Focus International plc - Micro Focus enters commercial agreement with Amazon.com web services arm

Micro Focus International PLC (LON:MCRO) announced it has signed a commercial agreement with Amazon Web Services (AWS).

It is intended to boost the modernisation of mainframe applications and workloads of large public and private enterprises to the AWS Cloud.

READ: Micro Focus says revenue decline ‘moderated’ in first year of turnaround

The pair will work together to deploy Micro Focus technology for customers looking to update their business mainframe applications and workloads to a cloud-based production environment.

Micro Focus has also issued warrants to the tech giant’s investment arm to subscribe for up to 15mln shares at 446.6p each.

Their vesting depends on the level of software revenues generated by AWS for Micro Focus under the commercial agreement over the multi-year term, with full vesting requiring a material impact on sales.

The enterprise software company’s chief executive, Stephen Murdoch, said in a release this collaboration has the potential to drive new customer adoption and growth within the Application Modernisation and Connectivity segment.

Shares surged 14% to 502p on Wednesday morning.

--Adds shares--

Quick facts: Micro Focus International plc

Price: 540.6 GBX

LSE:MCRO
Market: LSE
Market Cap: £1.81 billion
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