uploads/2016/06/1.png

Merger Announced with HPE’s Enterprise Services Unit Boosts CSC Price

By

Updated

Shares of CSC rose by 47% in May 2016

In this series, we’ll focus on the key drivers that impact the performance of Computer Science Corporation (CSC), as well as the announced merger with the Enterprise Services Segment of Hewlett-Packard Enterprise (HPE). In May 2016, CSC shares rose by 47% as the company announced the merger.

This merger will create a pure-play global IT service powerhouse with annual revenues of more than $26 billion. The new company will have more than 5,000 customers in 70 countries.

Article continues below advertisement

Both firms engaged in recent spinoffs

In November 2015, CSRA (CSRA) announced its separation from Computer Sciences Corporation (CSC). CSRA stated that it is now an independent public company trading on the New York Stock Exchange.

Also, CSRA completed its planned combination with SRA International (SRX). On November 30, 2015, the share price for the former CSC rose by 8.3% from $28.91 (its price on November 27, 2015) to $31.33 after adjusting for a 2,373:1,000 stock split.

Computer Sciences has more than 56,000 employees in more than 60 countries. It provides technology solutions with the aim of helping clients leverage intellectual property, as well as offering extensive domain expertise.

In November 2015, Hewlett-Packard (HPQ) and Hewlett-Packard Enterprise (HPE) became separate companies. HPE accounts for 3.2% of the First Trust ISE Cloud Computing Index ETF (SKYY).

Advertisement

More From Market Realist