Wednesday, May 25, 2016

HP Enterprise to Spin Off, Merge Services Business

Hewlett Packard Enterprise Co. (HPE) plans to spin off most of its technology services operations and merge them with those of #ComputerSciencesCorp. , in an $8.5 billion transaction that marks HP Enterprise’s latest adjustment to a shifting landscape that is roiling the market for corporate technology.

HP Enterprise will shed a business that accounts for roughly 100,000 employees, or two-thirds of the Silicon Valley giant’s workforce.

The deal, a blockbuster follow-up to the breakup of Hewlett-Packard Co. last fall, will create a corporate technology services specialist that will be led by Computer Sciences executives and have roughly $26 billion in annual revenue, the companies said. The remaining HP Enterprise operations will concentrate mainly on software, server systems, networking and storage hardware.

http://www.wsj.com/articles/hp-enterprise-to-spin-off-merge-services-business-1464121433

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