Channel partner programs, Mergers and Acquisitions

HP Enterprise Spins Off, Merges Services Business With CSC

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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...

Joe Panettieri

Joe Panettieri is co-founder & editorial director of MSSP Alert and ChannelE2E, the two leading news & analysis sites for managed service providers in the cybersecurity market.