HP has announced plans to separate into two new publicly traded companies; Hewlett-Packard Enterprise and HP Inc.
Hewlett-Packard Enterprise will be in charge of the company’s technology infrastructure, software and services businesses while HP Inc. will be take charge of personal systems and printing businesses, retaining the company’s current logo.
Under the new arrangement, which is expected to be completed in 2015, HP shareholders will own shares of both Hewlett-Packard Enterprise and HP Inc, the company said.
“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 Chief Executive Officer of HP.
According to 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.”