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Technology Mergers and Acquisitions

HP Enterprise Spins Off, Merges Services Business With CSC

Hewlett Packard Enterprise is spinning off and merging its enterprise IT services business with CSC, the companies confirmed today.

Among the highlights from the deal, according to HPE:

  • Transaction will deliver HPE shareholders approximately $8.5 billion in expected after-tax value in stock-for-stock exchange;
  • Merger of two businesses expected to produce first-year cost synergies of approximately $1 billion post-close, with run rate of $1.5 billion by end of year one; and
  • HPE shareholders will own approximately 50 percent of new combined company.

Read between the lines and most HP Enterprise channel partners should be celebrating. HPE’s consulting business, which has been a drag on the company, also competed on some fronts with partners.

Still, there are lingering challenges. For instance, the HPE-CSC relationship could upset some of HPE’s large integration partners…

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2 Comments

Comments

    Larry Walsh:

    Meh, on the conflict with large integration partners. That conflicts existed regardless of the spin-off/merger. If anything, this is a reason to celebrate, given that HPE has cleared the swimming lanes for professional services.

    Joe Panettieri:

    “Meh” <-- the perfect opener to 90% of social media comments. Long live professional services... in the channel. -jp

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