Palo Alto, CA—HP will separate into two 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 encompass HP’s personal systems and printing businesses, which will be named HP Inc. and retain the current logo.
Following the transaction, which should be completed by the end of fiscal 2015, HP shareholders will own shares of both Hewlett-Packard Enterprise and HP Inc.
The announcement comes as HP approaches the fourth year of its five-year turnaround plan. “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, chairman, president and CEO, HP. “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.”
Both companies will be well capitalized and expect to have investment-grade credit ratings and capital structures optimized to reflect their distinct growth opportunities and cash flow profiles.
Meg Whitman, president/CEO of HP, and Cathie Lesjak, chief financial officer of HP, will hold these positions with Hewlett-Packard Enterprise. Whitman will serve on the board of directors of Hewlett-Packard Enterprise, and Pat Russo will become chairman of Hewlett-Packard Enterprise. Dion Weisler, executive vice president of HP’s Printing and Personal Systems business, will lead HP Inc. as president and CEO. Whitman will serve as nonexecutive chairman of HP Inc.’s board.
Hewlett-Packard Enterprise. With a multiyear innovation roadmap across technology infrastructure, software and services, it will focus on enabling customers to take advantage of the opportunities presented by cloud, big data, security and mobility in the New Style of IT. By leveraging its HP Financial Services capability, the company will create technology deployment models for customers based on specific business needs. HP Financial Services will continue to provide financing and business model innovation for customers of HP Inc.
HP Inc. A leader in the personal systems and printing markets, HP Inc.’s profitability and free cash flow will enable investments in growth markets such as 3D printing and new computing experiences. hp.com
