CSC sees growth in government business amid spinoff speculation

Computer Sciences Corp. (NYSE: CSC) will complete its merger with the IT services business of Hewlett-Packard Enterprise Co.’s (NYSE: HPE) on Monday, and CSC CEO Mike Lawrie said Wednesday he expects the combined company’s public sector business to see growth in the years ahead.

“We’re expecting the U.S. public sector business to grow a little bit as we go forward,” Lawrie said at a company investor day Wednesday. “We see that business as growing low single digits as we go forward.”

This is significant because when it was first announced in May 2016 that HP Enterprise would merge its IT services business with CSC, analysts wondered whether the new company — which will be named DXC Technology — would sell off the roughly $3 billion public sector business. Just months before, after all, CSC spun off its government business. And Lawrie left a lot of room for speculation last May when asked about this particular division’s fate.

“HP Enterprise Services has a very strong business…

Federal News Network Logo
Log in to your WTOP account for notifications and alerts customized for you.

Sign up