Today HP announced to split into two separate businesses. Get the details below.
HP announced plans to separate into two new publicly traded Fortune 50 companies: one comprising HP’s enterprise technology infrastructure, software and services businesses, which will do business as Hewlett-Packard Enterprise, and one that will comprise HP’s personal systems and printing businesses, which will do business as HP Inc. and retain the current logo.
The decision to separate into two market-leading companies will provide each new company with enhanced independence, focus, financial resources, and flexibility to adapt quickly to market and customer dynamics, while generating long-term value for shareholders.
Immediately following the transaction, which is expected to be completed by the end of fiscal 2015, HP shareholders will own shares of both Hewlett – Packard Enterprise and HP Inc. The transaction is intended to be tax – free to HP’s shareholders for federal income tax purposes. Today’s announcement comes as HP approaches the fourth year of its five – year turnaround plan.
Over this time, the company has executed successfully against its turnaround objectives, keeping customers and partners at the forefront. HP has reignited its innovation pipeline, strengthened its go – to – market capabilities, rebuilt its balance sheet, and inspired its workforce and management teams. The company is now positioned to accelerate performance, drive sustained growth and demonstrate clear industry leadership in key areas. “Our work during the past three years has signifi cantly strengthened our core businesses to the point where we can more aggressively go after the opportunities created by a rapidly changing market,” said Meg Whitman, Chairman, President and Chief Executive Officer of HP.
“The decision to separate into t wo market – leading companies underscores our commitment to the turnaround plan. It will provide each new company with the independence, focus, financial resources, and flexibility they need to adapt quickly to market and customer dynamics, while generating long – term value for shareholders. In short, by transitioning now from one HP to two new companies , created out of our successful turnaround efforts, we will be in an even better position to compete in the market, support our customers and partners, and d eliver maximum value to our shareholders.”
HP has setup a special site for this historic announcement. You can get all the details here.
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