1. CSC, HPE Enterprise Services Merging To Form Solution Provider Powerhouse
On May 24 CSC and Hewlett Packard Enterprise announced that HPE would spin off its Enterprise Services business and combine it with CSC to create what will become the third largest solution provider in the market with 5,000 clients and annual revenue of $26 billion.
The news came on the heels of drastic periods of transformation at both companies. Just last year HPE was created through the split of Hewlett-Packard Co. into two companies. And CSC spun off its federal business and merged it with SRA International.
The deal starkly illustrates how quickly the dynamics of the IT industry are changing and the pace of corporate acquisitions and divestitures is accelerating as companies seek to re-invent themselves.
The companies expect to complete the merger by March 2017.