HPE completes CSC merger
HPE has completed the merger of its Enterprise Services business and Computer Sciences Corporation
This announcement follows shortly after the company gained approval from its shareholders for the move last week following the original decision in May of last year.
The new organisation will be called DXC Technology and officially comes into existence on the 4th April. According to HP the new company will focus on providing services to help corporates transform themselves into the digital age.
HPE is set to receive $13.5bn which also includes an equity stake in DXC. The new company will also be liable for a certain amount of HPE’s debt.
The new company is set to become one of the world’s largest services companies. It is estimated that it will generate approximately $26bn in revenues.
In a statement to NASDAQ Meg Whitman, CEO, said: “The close of this transaction leaves HPE with a crystal clear mission, tied directly to the solutions our customers and partners tell us they want most."
HPE’s service revenues have been in decline recently and the estimate of the new entity’s revenues looks optimistic.