Micro Focus International plc Settlement of Patent Litigation Case (4369F)

TIDMMCRO

RNS Number : 4369F

Micro Focus International plc

16 July 2021

16 July 2021

Micro Focus International plc

Settlement of Patent Litigation Case

The Board of Micro Focus International plc ("Micro Focus" or the "Company") issues an update regarding the Company's ongoing patent litigation with Wapp Tech Limited Partnership and Wapp Tech Corp (collectively "Wapp").

As previously disclosed, most recently on 1 July 2021 in our Interim results for the six months ended 30 April 2021, on 2 July 2018 Wapp brought a claim against Micro Focus in the Eastern District of Texas, accusing the Company of infringing three patents in connection with Micro Focus' manufacture and sale of certain products in the ADM product line, including LoadRunner and Performance Center.

The Company has now reached a settlement with Wapp for payment of $67.5m for complete resolution of the dispute without admission of liability. This amount was recognised as an exceptional item within the Group's results for the six months ended 30 April 2021 and will be cash settled imminently.

In concluding this matter, the Board considered a range of factors, including the possible time, cost and significant resources required for the appeal process and concluded that it was in the best interests of the Company that a settlement should be reached.

Pursuant to the settlement, the Company has been granted a fully paid-up, worldwide, irrevocable licence for the patents asserted by Wapp for current and future Micro Focus products and services, covering the Company as well as its customers.

This announcement contains information that was previously Inside Information, as that term is defined in the Market Abuse Regulation (Regulation (EU) No 596/2014 of the European Parliament and of the Council of 16 April 2014) as it forms part of domestic law by virtue of The European Union (Withdrawal) Act 2018.

Enquiries:

   Micro Focus                                                         Tel: [phone] 
   Stephen Murdoch, CEO                                     [e-mail] 

Matt Ashley , CFO

Ben Donnelly, Head of Investor relations

   Brunswick                                                           Tel: [phone] 
   Sarah West                                                           [e-mail] 

Jonathan Glass

Notes to Editors:

About Micro Focus

Micro Focus (LSE: MCRO.L, NYSE: MFGP) is a global enterprise software company supporting the technology needs and challenges of the Global 2000. Our solutions help organizations leverage existing IT investments, enterprise applications and emerging technologies to address complex, rapidly evolving business requirements while protecting corporate information at all times. Our product portfolios are Security, IT Operations Management, Application Delivery Management, Information Management & Governance and Application Modernization & Connectivity. For more information, visit: www.microfocus.com

LEI: 213800F8E4X648142844

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact [e-mail] or visit www.rns.com.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.

END

MSCDGGDRRUBDGBU

(END) Dow Jones Newswires

July 16, 2021 02:00 ET (06:00 GMT)