HP is set to divide into two new companies, dividing its printing and personal systems business to operate as HP Inc, while the technology infrastructure, software and services businesses will operate as Hewlett-Packard Enterprise.
The company is approaching the fourth year of its five-year turnaround plan. Over this time, the company says it has executed successfully against its turnaround objectives, keeping customers and partners at the forefront. The company said it is now positioned to accelerate performance, drive sustained growth and demonstrate clear industry leadership in key areas. The transaction is expected to be completed by the end of fiscal 2015.
‘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.
‘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.’
Dion Weisler, currently executive vice president of printing and personal systems business, will lead HP Inc. as president and CEO. The new company’s strong profitability and free cash flow will enable investments in growth markets such as 3D printing and new computing experiences. At the same time, it will continue to execute against a well-defined and established strategic plan, ensuring continuity for customers and consistent value to shareholders.
‘Since assuming responsibility for the Printing and Personal Systems Group, Dion and his leadership team have done an excellent job of building our relationships with customers and channel partners, segmenting the market and driving product innovation,’ added Whitman. ‘The creation of HP Inc. will only accelerate the progress the team has made.’
‘This is a defining moment in our industry as customers are looking for innovation to enable workforces that are more mobile, connected and productive while at the same time allowing a seamless experience across work and play,’ said Mr Weisler.
