DXC Technology officially opened for business Monday with 170,000 employees and $26 billion of annual sales after CSC closed its merger with HPE Enterprise Services.
DXC Chairman, President and CEO Mike Lawrie is slated to the opening bell at the New York Stock Exchange Monday to commemorate the creation of the world's third largest solution provider. This culminates a 10-month process to bring CSC and HPE Enterprise Services together and focus the combined entity on stabilizing revenue, next-generation talent, and driving digital transformation.
"With the successful close of our transaction, we are standing up a company that is ideally suited to meeting the needs of a rapidly changing technology marketplace," Lawrie said in a statement. "We are looking forward [to] delivering on our promise of producing greater value for clients, partners and shareholders, along with growth opportunities for our people."
The company said it has a series of global launch activities beginning this morning, including employee events at more than 150 sites and an inaugural advertising campaign to introduce the new company to the marketplace. The merger of CSC and HPE Enterprise Services was completed Saturday, the company said, and announced before the market opened Monday.
All outstanding shares of CSC common stock have been cancelled and converted into shares of DXC Technology. Some 50.1 percent of DXC's stock was issued to HPE stockholders (valued at approximately $9.5 billion), while the remaining 49.9 percent was issued to CSC stockholders.
Tysons, Va.-based DXC's stock opened its first official day of trading at $69.20 per share. DXC will replace Southwestern Energy on the prestigious S&P 500 stock market index, with Southwestern taking CSC's old spot on the S&P MidCap 400 index.
HPE said it has agreements in place with DXC to support current customers and grow business over time, but also plans to begin building valuable new partnerships with other leading IT services companies. HPE President and CEO Meg Whitman will also sit on DXC's board of directors.
"The close of this transaction leaves HPE with a crystal clear mission, tied directly to the solutions our customers and partners tell us they want most," Whitman said in a statement. "I am also particularly proud that this transaction will deliver approximately $13.5 billion in value to HPE and its shareholders, which is almost sixty percent higher than when it was first announced last year."
Palo Alto, Calif.-based HPE said that services remain core to the company's strategy. The company plans to continue investing in Pointnext, its technology services organization that draws on the expertise of more than 25,000 specialists in 80 countries to support customers across advisory and transformation services, professional services and operational services.
Pointnext will support businesses around the adoption of emerging technology such as cloud computing and hybrid IT, big data and analytics, and the Intelligent Edge and Internet of Things (IoT), according to HPE.