CSC spin merger gives HPE 'crystal clear mission', says Meg Whitman

Vendor claims services with remain core to its strategy through recently launched PointNext

Offloading its Enterprise Services business has given Hewlett Packard Enterprise (HPE) a "crystal clear mission" as it continues through a transitional phase that has seen it acquire and sell numerous companies and divisions, according to CEO Meg Whitman (pictured).

HPE this week completed the spin merger of its services business with CSC to create DXC Technology - a $25bn IT services firm.

The completed spin merger comes after HPE completed two quick-fire acquisitions this year, announcing its takeover of SimpliVity in January before following up with the Nimble Storage move in March.

HPE says the deal "unlocks a stronger, more focused HPE".

"The close of this transaction leaves HPE with a crystal clear mission, tied directly to the solutions our customers and partners tell us they want most," said Whitman, who will join the DXC board.

"I am also particularly proud that this transaction will deliver approximately $13.5bn in value to HPE and its stockholders, which is almost sixty percent higher than when it was first announced last year."

HPE claimed that, despite the divesture, services remain core to its strategy and that it will continue to invest in its recently launched technology services business PointNext.

It added that a "strong relationship" will remain with DXC to support current customers and grow the business over time.

"Technology is transforming business and industry at an extraordinary pace, and DXC Technology will help clients to thrive on change," said DXC CEO Mike Lawrie.

"Our goal is to produce greater value for clients, partners and shareholders, along with compelling career opportunities for our people ."

Government criticism

CSC has recently come under fire from the government over its redundancy plans, with one MP saying it was sacrificing employees to "ensure the right financial targets were hit" before the deal with HPE's services business completed.

The services firm announced plans to axe 1,100 of its UK employees earlier this year, following up on the previously announced cut of 499 jobs.