HP is looking for an alternative strategy for the Personal Computer Division (PSG)
The world’s number one PC maker achieved sales of approximately $ 2010 billion in fiscal 41. It is also a global market leader in the business and home PCs segment.
Recently reported that HP, in its current form, will no longer be the world’s largest PC maker. The company has now provided additional information in the form of a press release.
HP plans to fundamentally transform the division. An important part of the plan is to focus investment, resources and management attention on developing solutions that bring greater value to small, medium and large enterprise and government customers. HP believes that evaluating PSG alternatives will help the company meet its strategic goals, grow profitably, and increase shareholder value. With a portfolio of printing solutions, software, services, servers, storage and networking solutions, HP continues to help customers manage their information explosion and critical needs after the transaction.
“By demonstrating alternatives to PSG, we are demonstrating our commitment to increasing shareholder value and a more focused strategic and financial focus,” said Léo Apotheker, President and CEO of HP. “HP’s strategy, outlined in March, focuses on the cloud computing and solutions and software that respond to the changing needs of our customers, aligning with the general market trends that are radically reshaping the way technology is consumed and applied. Since then, these trends have accelerated further, so we need to take further steps to transform HP if we want to take advantage of the new opportunities. We believe that by acquiring Autonomy and exploring alternatives to PSG, we can enable HP to compete more effectively and implement its targeted strategy more accurately. ”
The personal computer market is evolving rapidly. New design solutions and application environments are emerging. In response, and with the interests of the company and its shareholders in mind, HP is exploring how PSG could position itself to better track rapid change and maintain its technological and market leadership.
“We are confident that with the alternatives developed for it, PSG can increase its performance, compete more successfully and create more value for HP shareholders,” Apotheker said. “PSG is a world-class organization with a market-leading position, a highly efficient supply chain, a broad presence and sales capabilities. Obviously, there are alternatives that offer PSG more autonomy and flexibility in making strategic investment decisions and allow the division to better position itself in terms of customers, partners and employees. ”
HP management, in conjunction with financial and legal advisors, is exploring alternative strategies, including the possibility of splitting the PC division into a separate company through a spin-off or other tax-free transaction, preferably for U.S. shareholders. The company calculates that the transaction could be completed within a year and a half. Until then, however, the range of products, customer service and organizational structure will remain unchanged. The Company does not intend to provide information on the process of developing alternative strategies until the Board of Directors has approved or executed the transaction or otherwise deems the public disclosure to be timely. Apotheker added: “When evaluating alternatives to PSG, we want to follow a path that not only adds value to HP shareholders, but also offers better opportunities for our employees, businesses, partners and customers. During this process, we will continue to focus on operating our business lines. The strength of PSG demonstrates the excellence of our world-class staff and commitment to innovation and our customers and partners. ”
Source: Press release
