Company to explore separating PSG through spin-off or other transaction
PALO ALTO, Calif., Aug. 18, 2011 - HP today announced that its board of directors has authorized the evaluation of strategic alternatives for its Personal Systems Group (PSG), including the exploration of the separation of its PC business into a separate company through a spin-off or other transaction.
PSG has a proud history of innovation and technological leadership as well as a strong operating track record and industry-leading profitability. PSG is the leading manufacturer of personal computers in the world and had annual revenues of approximately $41 billion in fiscal year 2010. PSG enjoys leading global market positions in consumer and commercial PCs.
HP is implementing a plan to fundamentally transform the company. An important component of the plan is focusing its investments, resources and management attention to drive higher value solutions to enterprise, small and midsize business and public sector customers. HP believes that the exploration of alternatives for PSG will help the company accomplish its strategic goals and pursue profitable growth and enhanced shareholder value. A post-transaction HP would continue to help its customers manage the information explosion and address their most critical needs through a portfolio that spans printing, software, services, servers, storage and networking.
"The exploration of alternatives for PSG demonstrates our commitment to enhancing shareholder value and sharpening our strategic and financial focus," said Leo Apotheker, HP president and chief executive officer. "In March we outlined a strategy for HP, built on cloud, solutions and software to address the changing requirements of our customers, shaped heavily by secular market trends that are redefining how technology is consumed and deployed. Since then, we have observed the acceleration of these market trends, which has led us to evaluate additional steps to transform HP to meet emerging opportunities. We believe the acquisition of Autonomy, combined with the exploration of alternatives for PSG, would allow HP to more effectively compete and better execute its focused strategy."
The personal computing market is quickly evolving with new form factors and application ecosystems. Given these realities, HP believes it is in the best interests of the company and its shareholders to explore ways for PSG to position itself to address these rapid changes and maintain its technological and market leadership positions.
"We believe exploring alternatives for PSG could enhance its performance, allow it to more effectively compete and provide greater value for HP shareholders," said Apotheker. "PSG is a world-class scale business with a leading market share position and a highly effective supply chain and broad reach and go-to-market capabilities. We believe there are alternatives that could afford PSG more autonomy and flexibility to make strategic investment decisions to better position the business for its customers, partners and employees."
HP management, together with its financial and legal advisers, will explore strategic alternatives, including the exploration of the separation of its PC business into a separate company through a spin-off or other transaction that would likely be tax free to U.S. shareholders. HP expects that the process could be completed within approximately 12-18 months.
There can be no assurance that any transaction regarding PSG will be pursued or completed. The company does not intend to disclose developments with respect to the progress of its strategic alternatives review process until such time as the HP board of directors approves or completes a transaction or otherwise determines that further disclosure is appropriate.
Apotheker added, "As we explore alternatives for PSG, we will be focused on a path that not only enhances value for HP shareholders but also provides greater opportunities for our people, businesses, partners and customers. While this process is underway, we will remain focused on operating our businesses. The strength of PSG is a testament to our world-class team of employees and reflects their commitment to innovation and ustomers and partners."
HP will be discussing this announcement during its previously scheduled Q3 2011 earnings conference call today at 2 p.m. PT / 5 p.m. ET. The call is accessible via an audio webcast at http://www.hp.com/investor/2011q3webcast.
HP creates new possibilities for technology to have a meaningful impact on people, businesses, governments and society. The world's largest technology company, HP brings together a portfolio that spans printing, personal computing, software, services and IT infrastructure at the convergence of the cloud and connectivity, creating seamless, secure, context-aware experiences for a connected world. More information about HP (NYSE: HPQ) is available at http://www.hp.com.
Latest News Posts
- Ubisoft's latest 'The Breach' trailer for Rainbow Six: Siege
- Quentin Tarantino explains his love for 70mm, says it trumps digital
- Man gets shot, instead of calling the cops, he grabs an Uber home
- New Fallout 4 mod dramatically overhauls in-game landscapes
- Apple rumored to remove the 3.5mm headphone jack from the next iPhone
- "Cheap" 4K Rig
- wifi card for gigabyte x99m gaming 5 microatx
- Newly built PC won't boot
- Spectre (2015) Cinema Movie Review
- New ASUS Notebook: Event Log flooding with Event ID 17 warnings from WHEA-Logger
- BRAVEN Balance, the Active Lifestyle Bluetooth Speaker Now Available
- COGITO FIT WINS DESIGN FOR ASIA AWARD
- SP/ Silicon Power Announces Flagship CompactFlash Memory Card - Superior CF 1100X Born For Ultimate Performance
- Team Group Announces Neptune Gaming SO-DIMM Memory
- Cooltek Announces the Skall Series ATX Mid-tower Chassis