Channel programs News
CSC Shareholders Approve Merger With HPE Enterprise Services, Bringing Creation Of DXC Technology A Step Closer
The launch of a new solution provider industry heavyweight drew one big step closer to completion Monday when CSC shareholders overwhelmingly approved the company's merger with the Enterprise Services operations of Hewlett Packard Enterprise to create the new DXC Technology.
DXC, expected to begin officially doing business April 3, will have annual sales of about $26 billion and more than 5,000 clients in 70 countries.
In a statement released after the close of the stock market Monday, CSC said nearly 99 percent of investors, holding just under 85 percent of its common stock, voted in favor of the merger at the meeting.
In the same statement, CSC Chairman, President and CEO Mike Lawrie thanked shareholders for their support, and added that the new DXC ’will be uniquely positioned to lead client digital transformations – creating greater value for clients, partners and shareholders, and presenting new growth opportunities for our people.’
The merger drew a positive reaction Monday from Chris Pyle, president and CEO of Champion Solutions Group, a solution provider based in Boca Raton, Fla., and No. 224 on the 2016 CRN Solution Provider 500 list.
"I think at the end of the day, it’s a smart move for HPE to build its services practice," Pyle told CRN. "CSC is a good organization and I think they’ll complement [each other] very nicely."
HPE and CSC struck a deal in May 2016 under which HPE would spin off its Enterprise Services business unit and merge it with CSC, currently No. 8 on the 2016 CRN Solution Provider 500. DXC is expected to focus on next-generation solutions in such areas as cloud computing and mobility.
Lawrie will remain president and CEO of the combined companies, while HPE President and CEO Meg Whitman will join the new company's board. Last month, the two firms disclosed the new company's name and unveiled its management lineup.
CSC stock rose 35 cents a share, or 0.52 percent, in Monday trading, closing at $68.05 on the New York Stock Exchange.
DXC will hold an Investor Day Wednesday in which senior executives are expected to provide details about DXC's strategy and financials, among other topics.
RICK WHITING contributed reporting to this story.