HP to split into HP Enterprise and HP Inc.
HP is preparing to split the company into two separate units in November, as part of its five year turnaround plan to improve shareholder value.
In October 2014, the company announced its plans to separate into two new publicly traded companies.
One company will be called Hewlett-Packard Enterprise, which will include enterprise technology infrastructure, software and services businesses.
The other company will be HP Inc, which will manage the company’s personal computers and printers businesses.
HP Enterprise will be led by CEO Meg Whitman, while HP Inc will be run by Dion Weisler.
HP Enterprise will manage the servers, storage, networking, converged systems, services and software as well as its OpenStack Helion cloud platform.
Following the division, the headquarter at Palo Alto campus will also be split and will serve as headquarter for both companies.
HP CEO Meg Whitman was quoted by Bloomberg as saying to shareholders at an annual meeting that, "As we go around the world each location will be divided between HP Inc and HP Enterprise."
Following the split, HP Inc will retain the current logo while the shareholders will own shares in the both the companies.
While announcing the decision in last October, Meg Whitman 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.
"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."