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Hewlett Packard Moves Forward With Plan to Split Into 2 Firms

Hewlett-Packard Moves Forward With Plan to Split Into 2 Firms

By NDTV Correspondent | Updated: 2 July 2015 14:22 IST

Hewlett-Packard is moving forward with plans to split into two companies, filing paperwork to create a new entity that will sell commercial technology, while a separate spinoff will sell personal computers and printers.

HP said in a regulatory filing Wednesday that the new company called Hewlett Packard Enterprise will include units of the old HP that sold computer hardware, software and tech services for large organizations. The papers show those units had $25.6 billion (roughly Rs. 1,62,931 crores) in sales over the last two quarters, with net earnings of $852 million (roughly Rs. 5,422 crores).

CEO Meg Whitman, who will lead the new enterprise company, said in a statement that the split remains on track to occur by November.

HP, meanwhile, said one of its senior executives, Bill Veghte, resigned this week to pursue an unspecified new opportunity.

Back in early-June, Hewlett-Packard Chief Executive Meg Whitman said the separation of HP Inc and Hewlett-Packard Enterprise would be effective on November 1.

Whitman made the announcement during the company's technology event, HP Discover 2015, in Las Vegas. The world's No. 2 personal computer maker said in October it would split into two listed companies, separating its computer and printer businesses from its faster-growing corporate hardware and services operations.

In late-May, HP forecast separation-related costs below the expectation of several analysts and reported a better-than-expected quarterly profit.

The 75-year-old company said it expects $400 million-$450 million (roughly Rs. 2,545 crores to Rs. 2,864 crores) of costs from the planned separation of its computer and printer businesses from its faster-growing corporate hardware and service operations.

Written with agency inputs

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