Both entities will take an equal stake in the new business
CSC and HP’s enterprise services arm are merging, creating an IT services company with sales estimated to be worth approximately $26bn a year, while providing billions in operational cost savings.
The US giants have seen major operational and structural changes over the last few years, with both breaking up their businesses into smaller chunks more suited to a sell-off, merger or spin-off.
The deal, expected to be complete in March 2017, will see CSC and Hewlett-Packard Enterprise (HPE) shareholders take an equal share in the new business, which will have more than 5,000 enterprise customers.
CSC CEO, Mike Lawrie, will become CEO of the new company and HPE CEO, Meg Whitman, will join a board of directors, split equally between CSC and HPE nominees.
“Our proposed merger with HPE Enterprise Services is a logical next step in CSC’s transformation,” said Lawrie. “The new company will be well positioned to innovate, compete and serve clients.”
Whitman added: “The spin-merger of HPE Enterprise Services with CSC is the right next step for HPE and our customers.”
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