May 24 (Reuters) - Hewlett Packard Enterprise Co said on Tuesday it plans to spin off and merge its enterprise services business with Computer Sciences Corp.
Hewlett Packard Enterprise, which houses the former Hewlett-Packard Co’s corporate hardware and services division, said the merger of the two businesses is expected to produce cost synergies of about $1 billion in the first year after close.
Hewlett Packard Enterprise (HPE) also said its net earnings rose to $320 million, or 18 cents per share, in the second quarter ended April 30, from $305 million, or 16 cents per share, a year earlier.
HPE’s board also authorized additional $3 billion for share repurchases. (Reporting by Alan John Koshy in Bengaluru; Editing by Maju Samuel)