WASHINGTON — Falls Church, Virginia-based Computer Sciences Corp. is about to get a whole lot bigger, thanks to an HP Enterprise spinoff.
Hewlett Packard Enterprise Co., a spinoff of Hewlett-Packard, will itself spin off and merge its business services division with CSC in a deal valued at $8.5 billion. When it’s complete, CSC’s worldwide workforce will swell from about 69,000 to more than 170,000.
The deal gives CSC HPE’s IT outsourcing business. It will create one of the world’s largest IT services companies, with annual revenues of $26 billion and more than 5,000 clients in 70 countries.
CSC stock (NYSE: CSC) jumped by up to 34 percent in Wednesday morning trading, to $47.59 per share.
CSC Chief Executive Mike Lawrie will become chairman, president and CEO of the new company. HPE President and CEO Meg Whitman will join the new company’s board of directors.
The announcement comes just six months after CSC split into two publicly traded companies: the commercial IT business CSC, and CSRA, its government contracting business in the U.S.
The deal still requires shareholder and regulatory approval, and is expected to close by March 2017.
