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BRIEF-HP Enterprise to merge enterprise unit with Computer Sciences
May 24, 2016 / 8:26 PM / a year ago

BRIEF-HP Enterprise to merge enterprise unit with Computer Sciences

May 24 (Reuters) - Hewlett Packard Enterprise Co

* Transaction will deliver HPE shareholders approximately $8.5 billion in expected after-tax value in stock-for-stock exchange

* Transaction includes an equity stake in newly combined company valued at more than $4.5 billion

* Says Affirms Fiscal 2016 Non Gaap diluted net earnings per share (EPS) outlook of $1.85 to $1.95

* Hewlett Packard Enterprise co says updates fiscal 2016 GAAP diluted net EPS outlook to $1.68 to $1.78

* Says Mike Lawrie to become chairman, president and CEO of new company, Meg Whitman to join board

* For fiscal 2016 Q3, Hewlett Packard Enterprise estimates non-gaap diluted net EPS to be in range of $0.42 to $0.46

* For fiscal 2016 Q3, Hewlett Packard Enterprise estimates GAAP diluted net EPS to be in range of $1.10 to $1.14

* Hewlett Packard Enterprise says board will be split 50/50 between directors nominated by HPE and CSC; Mike Nefkens to join new company’s executive team

* For fiscal 2016, Hewlett Packard Enterprise estimates non-gaap diluted net EPS to be in range of $1.85 to $1.95

* For fiscal 2016, Hewlett Packard Enterprise estimates gaap diluted net EPS to be in range of $1.68 to $1.78

* Q3 earnings per share view $0.48 -- Thomson Reuters I/B/E/S

* Fy2016 earnings per share view $1.88 -- Thomson Reuters I/B/E/S

* HPE shareholders will own approximately 50 percent of new combined company

* Mike Lawrie to become chairman, president and cEo of new company, Meg Whitman to join board

* Board will be split 50/50 between directors nominated by HPE and CSC; Mike Nefkens to join new company’s executive team

* Transaction includes cash dividend of $1.5 billion, and assumption of $2.5 billion of debt and other liabilities

* Merger expected to produce first-year cost synergies of $1 billion post-close, with run rate of $1.5 billion by end of year one

* Free spin-off and merger of enterprise services business with CSC Source text for Eikon: Further company coverage: (Bengaluru Newsroom: +1 646 223 8780)

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