One of the few remaining British technology firms listed in London is to pass into foreign ownership after a Canadian software provider on Thursday night announced a £5bn deal. Shares in IT firm Micro Focus surged more than 90% on Friday after it revealed it was set to be snapped up by OpenText in a deal expected to be completed in the first quarter of 2023. OpenText, which is one of the world’s largest software firms and is listed on the US Nasdaq, has offered 532p per share for Micro Focus, marking a 98% premium Wednesday’s share price. OpenText’s boss, Mark Barrenechea, said the deal – the latest in which a UK firm has been bought by overseas interests in recent years – would create “one of the world’s largest software and cloud businesses with a tremendous marquee customer base, global scale and comprehensive go-to-market”. The news nearly doubled the price of Micro Focus’s FTSE 250-listed shares, which were trading at about 512p on Friday morning. It helped reverse a slump in Micro Focus shares, which have tumbled in the wake of its £6.3bn takeover of Hewlett Packard Enterprise’s software division in 2017. Micro Focus struggled to integrate the business, which was bigger than itself and was the largest acquisition in its history. Revenue subsequently declined, with the company forced to issue a string of profit warnings in the years that followed. Micro Focus’s chairman Greg Lock said the takeover offer from OpenText “demonstrates the significant progress we have made transforming the business. OpenText not only shares our values but will offer new opportunities for both our customers and employees.” The deal is the latest in which a UK firm has been taken over by overseas interests in recent years, with major brands including supermarket Morrisons, security company G4S, and infrastructure group John Laing now owned by US firms. Cybersecurity firm Darktrace last week confirmed it was in the early stage of takeover talks with the US private equity company Thoma Bravo, though no firm offer has been made. Days later it emerged that French conglomerate Schneider Electric was considering a takeover of British software developer Aveva, a move that would involve buying the 40% of the firm it does not already own.