(Alliance News) -Â Micro Focus International PLC on Wednesday said it has signed a commercial agreement with Amazon.com Inc's cloud platform arm.
The pact with Amazon Web Services formalises a strategic collaboration to accelerate "the modernization of mainframe applications and workloads of large public and private enterprises" to the AWS Cloud.
The two will work to use Micro Focus technology for customers looking to shift their business-critical mainframe applications and workloads to a cloud-based production environment.
In conjunction with the agreement, Micro Focus has issued warrants to Amazon NV Investment Holdings LLC to subscribe for up to 15.9 million shares in the London-listed firm at 446.60 pence each.
Shares in Micro Focus were up 14% at 500.80p each in London early Wednesday, making it the top performer in the FTSE 250 in opening trade.
"The vesting of the warrants generally depends on the level of software revenues generated by AWS for Micro Focus under the commercial agreement over the multi-year term, according to revenue targets set out in the agreement," the company said.
Full vesting of the warrants requires the commercial agreement to deliver a "material impact" on both Application Modernisation & Connectivity and total group revenue.
Micro Focus Chief Executive Stephen Murdoch said: "This important strategic agreement between Micro Focus and AWS combines our technology leadership position in Application Modernisation with the world's most comprehensive and broadly adopted cloud provider.
"The modernization of mainframe applications and workloads into cloud environments is increasingly becoming an imperative in the digital transformation programmes of large enterprises worldwide, and this collaboration has the potential to drive new customer adoption and growth within our Application Modernisation and Connectivity Product Group for an extended period."
By Lucy Heming;Â lucyheming@alliancenews.com
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