Hewlett-Packard, a key supplier to the telecoms industry, has announced it will separate into two publicly-traded companies by the end of next year.
Hewlett-Packard Enterprise will consist of the company’s infrastructure, software and services business. It said it will allow customers “to take full advantage” of the opportunities presented by cloud, big data, security and mobility in the “New Style” of IT.
HP’s current President and CEO Meg Whitman will take on the same role at Hewlett-Packard Enterprise.
HP Inc. will retain the company’s trademark logo and comprise the PC and printing business, with plans to explore new technologies such as 3D printing and “new computing experiences”.
It will be headed by Dion Weisler, Executive VP of HP's current Printing and Personal Systems business.
The announcement is the latest development in HP’s five-year turnaround plan as the company looks to refresh its business, rebalance its financials and “reignite” company-led innovation.
HP stated that the split was a strategic step that would allow the company to direct resources and technological development more effectively across its areas of expertise, whilst also generating more value for investors.
It promised that both companies will be well capitalised and said it expected them to have investment grade credit ratings.
Whitman claimed that HP’s progress over the past three years meant it was now primed to “more aggressively” tackle new opportunities on the market.
She commented: “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.
“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.”
HP saw revenues grow one percent to $27.6 billion in its most recent financial results for the third quarter.