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HP Enterprise's services business to merge with CSC

By Ng Chong Seng - on 30 May 2016, 2:22pm

HP Enterprise's services business to merge with CSC

Back in 2014, HP announced that it’ll be splitting into two companies: a Hewlett Packard Enterprise that focuses on business solutions, and an HP Inc. that concentrates on PCs and printers. More than 30,000 job cuts later, the split was completed last year.

Now, in an attempt to focus on its cloud services business and other fast-growing units, HP Enterprise has announced that its IT services business (the Enterprise Services segment) will be merging with Computer Sciences Corporation, a U.S. MNC that provides IT-based business solutions and services.

The ‘spin-merger’ is expected to be completed by end March 2017. Following the transaction, CSC and HPE shareholders each will own approximately 50% of the new company’s shares. Mike Lawrie, who currently serves as chairman, president, and CEO of CSC, will become chairman, president and CEO of the new company; while Meg Whitman, HPE’s president and CEO, will join the new company’s Board of Directors.

With expected annual revenues of US$26 billion and more than 5,000 clients in 70 countries, the new company is expected to become the world’s largest pure IT services company.

Source: CSC.

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