Hewlett Packard Enterprise is spinning off and merging its enterprise IT services business with CSC, the companies confirmed today.
Among the highlights from the deal, according to HPE:
- Transaction will deliver HPE shareholders approximately $8.5 billion in expected after-tax value in stock-for-stock exchange;
- Merger of two businesses expected to produce first-year cost synergies of approximately $1 billion post-close, with run rate of $1.5 billion by end of year one; and
- HPE shareholders will own approximately 50 percent of new combined company.
Read between the lines and most HP Enterprise channel partners should be celebrating. HPE's consulting business, which has been a drag on the company, also competed on some fronts with partners.
Still, there are lingering challenges. For instance, the HPE-CSC relationship could upset some of HPE's large integration partners...
