Has CSC Acquired HP? A Comprehensive Look at the Merger Details

Many questions have been raised regarding the potential acquisition of HP by CSC. However, the truth is much more nuanced and involves a strategic business move aiming to form a new entity focused on enterprise services. In this article, we will explore the actual situation and the upcoming merger between HPE and CSC.

The Confusion Surrounding the Acquisition Rumors

The confusion surrounding the acquisition rumor emerged from a perceived connection between HPE (former HP Enterprise and HP Inc.) and CSC (Computer Sciences Corporation). It has often been misconstrued that there could be a direct acquisition of HP by CSC due to their historical and business connections. However, the reality is both companies are not acquiring each other, but rather merging to form a new entity.

The Merger Process and Details

The partnership between HPE and CSC is a strategic move designed to combine their strengths in enterprise services, aiming to create a company worth approximately 26 billion dollars. Though they will be merging, it is not a direct acquisition of one company by the other. Instead, it is a sub-division of HP Enterprise Services (HPES) from HP, which was formed when the old HP split into HPE and HP Inc. This division was then integrated with CSC, leading to the new merger deal.

HPES was effectively the workforce that old HP gained through the acquisition of EDS (Electronic Data Systems). With this new merger, EDS will be split off again, and the creation of the new company will focus on providing comprehensive enterprise services.

Key Figures and Future Plans

The merger will result in the formation of a new company with a split 50/50 board of directors between HPE and CSC. It is important to note that CSC will not be acquiring HPE, nor will HPE be acquiring CSC. The new company will focus on providing enterprise services, with Mike Lawrie, the current head of CSC, becoming the chairman, president, and CEO of the new company. Additionally, Meg Whitman, a significant figure in the tech industry, will serve on its board of directors.

Mike Lawrie's role in the new company will be critical in setting its direction and overseeing its growth. His extensive experience in the industry will certainly bring valuable insights and strategic planning to the new company. Meg Whitman's involvement on the board will also bring a wealth of experience, having served as the CEO of eBay and Hewlett Packard Enterprise among other roles.

Conclusion

In summary, while the merger between HPE and CSC is a significant and strategic move, it is not an acquisition in the traditional sense. Both companies are combining their strengths to form a new entity that will focus on providing enterprise services. This move is aimed at creating a company that will be better positioned to meet the needs of businesses in the enterprise sector. The new company will have a split board of directors and will be led by key industry figures, ensuring a strong foundation for growth and success.