As expected, HP has confirmed it is dividing itself into two companies: Hewlett-Packard Enterprise, which will focus on servers and software, and HP Inc, a PC and printing company.
As reported earlier today, HP is splitting the two companies after examining various routes to breathe life into its ailing PC and devices division, including potential trade sales.
HP confirmed the split in a statement in the past hour.
Meg Whitman is to be president and CEO of Hewlett-Packard Enterprise; Pat Russo is to be chairman of Hewlett-Packard Enterprise Board.
Dion Weisler is to be president and CEO of HP Inc, while Whitman is to be chairman of HP Inc.
HP said the separation into independent publicly traded companies will provide each company with its own, more focused equity currency, and investors with the opportunity “to invest in two companies with compelling and unique financial profiles well suited to their respective businesses”.
The split is expected to be completed by the end of fiscal year 2015 and HP shareholders will own shares of both Hewlett-Packard Enterprise and 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,” Whitman said.
“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.”