HP to split into two companies
Company will separate enterprise business from PCs and printing
HP has announced that it will split its business into two separate companies, with one enterprise-focused business, and one operation covering PCs and printers.
HP's enterprise hardware, software and services businesses, will be known as Hewlett-Packard Enterprise, while the PC and printing businesses, will be called HP Inc.
In a statement, the company said that the split is a strategic step to provide each new company with the focus, financial resources and flexibility to adapt quickly to market and customer dynamics while generating long-term value for shareholders
The break up is expected to be completed by 31st October next year. HP shareholders will own shares of both Hewlett-Packard Enterprise and HP Inc.
Meg Whitman will be President and Chief Executive Officer of Hewlett-Packard Enterprise, while Dion Weisler will be President and Chief Executive Officer of HP Inc.
"Our work during the past three years has significantly 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. "The decision to separate into two 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 deliver maximum value to our shareholders."