Hewlett-Packard Enterprise will define the next generation of technology infrastructure, software and services for the New Style of IT,Hewlett-Packard on Monday announced that the company will split into two separate “Fortune 50” listed companies, a main PC and printer business, in addition to a main enterprise hardware and services. Which one called Hewlett-Packard Enterprise, the latest attempt by the technology company to improve its fortunes by breaking itself in two. HP’s leading enterprise technology infrastructure services, software services and service business components. Another is called (HP Inc).
The split is expected before the end of fiscal 2015 will be completed, HP shareholders will also have “HP Enterprise” and “Hewlett-Packard” stock.
HP’s chairman, president and CEO Meg Whitman, said: “After the last three years of efforts, our core business has been significantly strengthened, so has the ability to pursue a more aggressive approach to the rapidly changing market created opportunities. “
“Split decision further highlights our commitment to the pursuit of the recovery plan after the spin-off, the new company will get their independence adapt quickly to market needs, focusing financial resources and flexibility to create long-term value for our shareholders. Jane and words, the Hewlett-Packard from a company into two separate companies, market competition will be more conducive to better support our customers and partners to create greater value for our shareholders. “
After the spin-off is completed, Whitman will serve as “HP enterprise” president and CEO, Hewlett-Packard current CFO Cathie Lesjak will serve as the “HP Enterprise” CFO. In addition, Whitman will join the “HP Enterprise” board of directors, independent director of the HP Pat Russo will serve as the “HP Enterprise” chairman.
HP’s current PC and printer business leader Dion Weisler will serve as “HP” CEO and president, and Whitman will serve as non-executive chairman.
HP decided to increase the number of 5,000 people will be laid off. According to HP’s previous layoffs, the company will lay off 45,000 people to 50,000 people, accounting for 6.35% of the total number of employees worldwide HP. Under the restructuring plan, HP has laid off 36,000 people. But HP today will lay off 5,000 people once again to increase the number reached 55,000 people.
Details of the Transaction
The spin-off will be tax-free to shareholders by way of allotment. It is expected that by the end of fiscal 2015 before the spin-off will be complete. The exact date will depend on a series of related conditions, such as the approval of the board of directors of the company.
After the Spin-off of the New Company
“HP Enterprise” will focus on servers, storage, networking, system integration, services and software business, as well as Open Stack Helion cloud platform.
With 3D printing technology and new computing experience, “Hewlett-Packard” will become the leading Personal Systems (PC) and printing companies.
HP expects, based on non-US GAAP diluted net income per share in fiscal year 2014 will reach $ 3.70 to $ 3.74. Based on GAAP, net income per diluted share in fiscal year 2014 will reach $ 2.60 to $ 2.64.
2015 fiscal year, based on non-GAAP diluted net income per share will reach $ 3.83 to $ 4.03. Based on GAAP diluted net income per share will reach $ 3.23 to $ 3.43.