In a surprise move Tuesday, Hewlett-Packard Enterprise said it would spin off its enterprise services business and merge it with CSC to create an IT services giant with $ 26 billion in annual revenue.
It’s the latest step by CEO Meg Whitman in her effort to turn around one of Silicon Valley’s oldest companies. Just last year, Hewlett-Packard split itself into two vendors, with HPE selling data center products and services, and HP Inc. selling PCs.
Now, HPE will slice itself up further, doubling down on its bet that a smaller company will be able to move faster and attract new business in a world increasingly dominated by the cloud.
HPE said it expects to complete the “spin-merger” by March 2017. The combined company will be led by Mike Lawrie, CSC’s chairman, president and CEO. Whitman will have a seat on the board, and the remaining directors will be nominated half by HPE and half by CSC.