With the hope that a deal can fetch between $8 billion and $10 billion, Hewlett Packard Enterprise Co (HPE) has got in to talks with buyout firm Thoma Bravo LLC to sell its software division, reported Reuters citing people familiar with the matter.

After its separation last year from computer and printer maker HP Inc, HPE Chief Executive Meg Whitman has sought to focus the U.S. company’s strategy on networking, storage, data centers and related technology services and the negotiations come came amidst such efforts.

The sources told Reuters this week that in a sale process managed by investment bank Goldman Sachs Group Inc,, HPE has received offers for the software unit of as much as $7.5 billion.

Though significant discrepancies in valuation expectations persist and no deal is certain, the people said that Thoma Bravo has made the highest offer for the assets among the private equity firms that held discussions with HPE.

Reuter further reported that Vista Equity Partners Management LLC, Carlyle Group LP and TPG Capital LP are among the other private equity firms that made offers for the software assets. It was still possible that Thoma Bravo would buy only some of the assets or HPE would turn to a buyout firm other than Thoma Bravo to pursue a deal, the people said.

The sources further said that if the buyer already owns some related companies, a sale of HPE’s entire software division to a single private equity firm would be easier. Thoma Bravo could produce cost savings and efficiencies if combined with some of HPE’s software assets, the people added as it owns several software companies, including Dynatrace LLC and Compuware Corp.

Since the negotiations are confidential, the sources asked not to be identified. HPE, Goldman Sachs, Thoma Bravo, Vista Equity, Carlyle and TPG declined to comment.

Giving HPE a market capitalization of $36.8 billion, the company ended Thursday’s New York trading up 3.2 percent at $22.16 as its shares rose as much as 4 percent on the news.

Down from $3.9 billion in 2014, HPE’s software unit generated $3.6 billion in net revenue in 2015. A market shift toward cloud subscription offerings has challenged revenue growth in its software unit, the company has said.

As a result of the $4.5 billion acquisition of Mercury Interactive in 2006 and its ill-fated $10.3 billion acquisition of Autonomy Corp in 2011, HPE acquired part of its software portfolio. ArcSight, a cyber security firm as well as products for IT operations management and Vertica, a big data analytics platform include the software assets.

Looking to slim down a large portfolio of noncore software assets that are struggling to generate growth, HPE is the latest technology company to do so. To buyout firm Francisco Partners and the private equity arm of activist hedge fund Elliott Management Corp for more than $2 billion, Dell Inc agreed to sell its software division in June.

In a tax-free all-stock transaction known as a Reverse Morris Trust, HPE agreed to merge its IT services and outsourcing unit with Computer Sciences Corp to create a $9 billion company in May.

(Adapted from Reuters)