Hewlett Packard Enterprise (HPE) announced plans for a tax-free spin-off and merger of its Enterprise Services business with Computer Sciences Corp (CSC) which will create a pure-play, global IT services powerhouse with $26 billion in annual sales. HPE shareholders will own shares of both HPE and approximately 50 percent of the new company. Mike Lawrie, the current head of CSC, will become chairman, president and CEO of the new company, and Meg Whitman will join the Board of Directors.
According to HPE, the spin-off and merger is the logical next step in the turnaround of its Enterprise Services segment. It also allows a standalone HPE to further sharpen its leadership in building the vital end-to-end infrastructure solutions necessary to power the enterprise cloud and mobility revolutions.
Meg Whitman, president and chief executive officer of Hewlett Packard Enterprise
The ‘spin-merger’ of HPE’s Enterprise Services unit with CSC is the right next step for HPE and our customers. Enterprise Services’ customers will benefit from a stronger, more versatile services business, better able to innovate and adapt to an ever-changing technology landscape.
Mike Lawrie, CSC chairman, president and chief executive officer
Together, CSC and HPE’s Enterprise Services will have the scale, foundation and next-generation technologies to innovate, compete and grow in a rapidly changing marketplace.