Hewlett-Packard Enterprise shrinks again in $8.8B spin off
SAN FRANCISCO (AP) — Hewlett-Packard Enterprise Co. will spin off a big chunk of its business software line-up in an $8.8 billion deal with Micro Focus International PLC, continuing the unraveling of what once was Silicon Valley's largest company.
The Palo Alto, California, company said Wednesday that it will get a $2.5 billion cash payment and its shareholders will hold a 50.1 percent stake in the new combined company.
The overhaul marks another step in CEO Meg Whitman's effort to transform the once-mighty technology conglomerate into a leaner, more efficient company catering to a few core markets that she believes will be most likely to grow in the future.
After its shake-up is completed, HPE expects to have about $28 billion in annual revenue, down from $52 billion in its last fiscal year ending in October.
Net income soared to $2.27 billion, or $1.32 per share, thanks to a hefty gain on an asset sale.