HP on Monday morning confirmed rumors that it's splitting into two publicly traded companies.
One company, to be called Hewlett-Packard Enterprise, will focus on HP's enterprise technology infrastructure, software, and services. The other company, which will keep the name HP Inc. and the current logo, will comprise the firm's personal systems and printing business. The transaction is expected to close by the end of fiscal 2015.
The move comes as HP approaches year four of its five-year turnaround plan, the company said.
"Our work during the past three years has significantly strengthened our core businesses to the point where we can more aggressively go after the opportunities created by a rapidly changing market," HP CEO Meg Whitman said in a statement. "The decision to separate into two market-leading companies underscores our commitment to the turnaround plan."
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Whitman continued: "It will provide each new company with the independence, focus, financial resources, and flexibility they need to adapt quickly to market and customer dynamics, while generating long-term value for shareholders. In short, by transitioning now from one HP to two new companies, created out of our successful turnaround efforts, we will be in an even better position to compete in the market, support our customers and partners, and deliver maximum value to our shareholders."
As for the management structure, Whitman and HP Chief Financial Officer Cathie Lesjak will hold their positions with Hewlett-Packard Enterprise. When the split is complete, Whitman will also serve on the board of Hewlett-Packard Enterprise and Pat Russo will move from Lead Independent Director of HP to Chairman of Hewlett-Packard Enterprise.
Meanwhile, Dion Weisler, executive vice president of HP's printing and personal systems business, will lead HP Inc. as President and Chief Executive Officer. Whitman will also serve as non-executive Chairman of HP Inc.'s board.
HP said the enterprise business will focus on areas like the cloud, big data, security, and mobility, as well as create "unique technology deployment models for customers and partners based on their specific business needs." On the consumer side, HP plans to get into 3D printing and other "new computing experiences."