Hewlett-PackardÂ (NYSE: HPQ) willÂ split the company into two publicly traded firms by the end of fiscal year 2015–Â with oneÂ company set to specialize in enterprise ITÂ hardware, software and servicesÂ andÂ the other in personal computersÂ and printers.
The company said MondayÂ that the enterprise hardware and services business will operate asÂ Hewlett-Packard EnterpriseÂ and theÂ PC and printing business will operate asÂ HP Inc.
“The decision to separate into two market-leading companies underscores our commitment to [our] turnaround plan, ” said HP CEOÂ Meg Whitman.
“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.”
Whitman will serveÂ as president, CEO and board member of Hewlett-Packard Enterprise andÂ Patricia Russo will take the board chairman role there.
Dion Weisler will be presidentÂ and CEO of HP Inc., whereÂ Whitman will also serve asÂ a non-executive chairman.
The companyÂ noted that it will distribute shares for both spinoff companies to its stockholders tax-free, following final approval by the HP board of directors.
Goldman Sachs & Co. served as financial adviser andÂ Wachtell, Lipton, Rosen and Katz served as legal adviser for the pending transaction.
The Wall Street Journal, whichÂ first reported the move Sunday, Â saidÂ the company wants theÂ move to boost operations for the enterprise technology businessÂ and forecasts aÂ different growth profile for the PC and printerÂ business.
According to the Journal, HPÂ has examined the idea ofÂ a separation for a few years, such as a proposed spinoff of the PC business in 2011 that did not go through.
Whitman has made several reorganization efforts at the company over the pastÂ two years to help address aÂ drop in sales.