A PYMNTS Company

US: HP Enterprise does $8.5B merger deal

By  |  May 25, 2016

Hewlett Packard Enterprise is merging its enterprise services unit with Computer Sciences Corp. in a deal that it said delivers about $8.5 billion in value to its shareholders on an after-tax basis.

This includes a 50 percent equity stake in the newly combined company valued at more than $4.5 billion, a cash dividend of $1.5 billion, and the assumption of $2.5 billion of debt and other liabilities.

HP Enterprise was formed last fall, when Hewlett-Packard split into two companies. CEO Meg Whitman runs HPE, which kept the tech giant’s corporate-technology business while the second new company, HP Inc., focuses on the hardware business of personal computers and printers.

The latest spinoff follows another paring down by Whitman last month, when it agreed to sell control of Indian outsourcing firm Mphasis Ltd. for about $825 million to private equity firm Blackstone Group.

Full Content: Silicon Valley Business Journal

Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.