Hewlett Packard Enterprise goes public, splitting HP into two companies
On Monday, Hewlett Packard Enterprise (HPE) Chief Executive Officer Meg Whitman, as well as partners and customers, rang the opening bell at the New York Stock Exchange, and with it the long planned separation of the HP’s consumer and enterprise businesses became official.
Going forward, HPE will focus on infrastructure, servers, networking, services, software, and financial services. HPE projects annual revenue for the new company to be $53 billion; HP Inc will sell personal computers and printers, and be run by Dion Weisler.
Wesiler was previously the Executive Vice President of Printing & Personal Systems under the combined company, and Whitman, was CEO.
The split is expected to cost nearly 2 billion dollars, and was originally announced back in October of 2014. HP has also shed nearly 50,000 jobs through the process. Since Whitman took over as CEO in 2011, HP has cut nearly 85,000 from its workfoce. Since the announcement, HP stock lost nearly 1/3 of its value but on the first day of trading HP Inc (which now trades as HPQ) jumped 13 percent, while HPE dropped 1.6 percent.
In an interview with Re/code, Whitman said HPE would have around $5.5 billion in cash on hand, which she said is planned to use for strategic purchases, and cited the recent $3 billion purchase of Aruba Networks as an example of the kind of acquisitions she wanted to make.
Originally published at www.petri.com on November 3, 2015.