May 31, 2016 10:04 pm | Updated 4 years ago.
Hewlett- Packard Enterprise Co plans to merge its IT services wing with Computer Sciences Corp, allowing the company to pay attention to its cloud services business and other growing units. This deal which is valued at $8.5 billion will witness Hewlett- Packard Enterprise taking charge of hardware products like servers and data-center storage. The Computer Science Corporation will be in charge of the IT service division .The existing employees of Hewlett- Packard will be absorbed by CSC making it one of the largest consulting and service companies in the tech sector.
According to Meg Whitman Chief Executive of Hewlett-Packard Enterprises, hailed the merger with Computer Science as a best possible step for the company as well as its customers. This merger is also seen by analysts as the company’s policy to streamline operations and focus more on the company’s strengths. The Chief Executive of Computer Sciences will become the chairman, president and CEO of the new company. HPE is also expected to register a rise in its shares enabling the company to earn a profit in its fiscal third quarter.
Date of Publications: May 25, 2016