As Hewlett Packard Enterprise continues to re-structure its operations to state competitive in the world of high-tech, it has decided to sell off its business services division to its competitor Computer Sciences Corp.
HP Enterprise will earn about $8.5 billion for its shareholders from the deal. The unloading of the business division will allow HP Enterprises, one of two companies formed last year after the computer giant formed two companies, to better concentrate on selling data-center hardware, software, and other commercial tech supplies for large organizations. The outsourcing business that it is spinning off includes operations which the old HP acquired when it purchased Electronic Data Systems Inc., in 2008. That deal cost HP $14 billion.
Meg Whitman, CEO of HP Enterprise, explained that despite the fact that the business services division helped to bring in more customers, it was growing at a slower pace than other divisions of HP Enterprises in terms of both growth and profits. Experts said that some of the operations HP acquired from EDS were not state of the art.