Hewlett Packard Enterprise, one of two new companies that will emerge once the current HP splits off its PCs and printers business from its enterprise IT offerings, has filed Form 10 with the US Securities and Exchange Commission, an important milestone in the separation process.
"Today, I'm more convinced than ever that this separation will create two compelling companies well positioned to win in the marketplace and to drive value for our stockholders," HP CEO Meg Whitman, who will be chief exec of Hewlett Packard Enterprise following the split, said in a statement.
The 316-page filing [PDF] gives detailed financial information for HP's enterprise arm once it separates from the mothership, leaving the current HP's printing and desktop PC businesses to carry on as HP Inc.
Each current HP shareholder will receive shares in HP Enterprise after the split, although it's not yet known how many shares of HP Enterprise each share of today's HP will be worth.
The new company, which has been incorporated in Delaware, will comprise the current HP's Enterprise Group, Enterprise Services, Software, and Financial Services reporting segments and is expected to trade on the New York Stock Exchange under the symbol HPE. HP Inc, meanwhile, will continue to trade on the NYSE under HP's current symbol, HPQ.
The two new companies will maintain a close relationship once the separation is complete and they will enter into a number of contractual agreements to cement their bond, including "a tax matters agreement, an employee matters agreement, a transition services agreement, a real estate matters agreement, a commercial agreement and an IT service agreement."
Each company will agree not to compete in the other's markets, generally speaking, for three years following the separation.
Each will also agree to not solicit the other's employees for 12 months after the split and to not hire them at all for six months.
The two companies will enter into an all-inclusive patent cross-licensing agreement for a period of three years, and for five years each will have the option of acquiring patents from the other in cases where the patents would help defend against patent litigation.
The two companies will each also receive "royalty-free, perpetual and worldwide" licenses to "certain other intellectual property." Just what that property might be wasn't said, beyond that it may include "unregistered and certain registered copyrights, trade secrets and know-how included in the parties' products, services, businesses and research efforts."
Otherwise, Hewlett Packard Enterprise will take control of all assets and liabilities currently held by HP's enterprise business, including customer contracts.
Had HP's enterprise-focused divisions been a separate company during fiscal 2014, it would have brought in total net revenue of $55.12bn and net income of $1.65bn.
If all goes according to plan, the division of the current HP into two new companies should be complete by the start of its fiscal 2016, which begins on November 1. ®