Mubasher: Micro Focus’ stock dropped 55% to 849 pence on the London Stock Exchange (LSE) on Monday following the resignation of its CEO Chris Hsu and a low-revenue forecast and following its acquisition of a major software company.

“The chief executive Chris Hsu was leaving, partly to spend more time with his family, and would be replaced by chief operating officer Stephen Murdoch,” the Newbury-headquartered software firm stated.

The negative forecast regarding the UK-based company’s revenue is attributed to the closure of an EUR 6.8 billion ($8.39 billion) deal to acquire Hewlett Packard Enterprise's (HP) software business.

The major transaction would drag down the tech giant’s performance, executive chairman Kevin Loosemore commented. 

By acquiring HP, Micro Focus also purchased Autonomy, a former British computer business that had been acquired by HP at an earlier time.

“The company’s cost savings drive was ahead of schedule and its net debt was expected to be in line with expectations,” the LSE-listed company said.