HP Enterprise to merge IT services unit with Computer Sciences

Source: Rueters

Hewlett Packard Enterprise Co (HPE.N) said it would spin off and merge its struggling IT services business with Computer Sciences Corp (CSC.N), allowing the company to focus on its faster growing businesses.

Shares of Hewlett Packard Enterprise, formed after Hewlett-Packard Co formally split in November, rose 10.5 percent in extended trading on Tuesday.

Computer Sciences' shares jumped 19.5 percent to $42.6.

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Computer Sciences Chief Executive Mike Lawrie will become chairman, president and CEO of the new company, 50 percent of which will be owned by HPE shareholders. Whitman will join the board of the new company.

The new company's board will be split evenly between directors nominated by HPE and CSC.



Read more: http://www.reuters.com/article/us-hewlett-packard-divestiture-csc-idUSKCN0YF2PV