Bangkok--10 Nov--Hill and Knowlton
HP To Keep PC DivisionContinued combination of HP and PSG expected to deliver greater customer and shareholder value
HP today announced that it has completed its evaluation of strategic alternatives for its Personal Systems Group (PSG) and has decided that PSG will remain part of HP.
“HP objectively evaluated the strategic, financial and operational impact of spinning off PSG. It’s clear after our analysis that keeping PSG within HP is right for customers and partners, right for shareholders, and right for employees,” said Meg Whitman, HP President and CEO. “HP is committed to PSG, and together we are stronger.”
The strategic review involved subject matter experts from across the businesses and functions. The data driven evaluation revealed the depth of the integration that has occurred across key operations like supply chain, IT and procurement. It also detailed the significant extent to which PSG contributes to HP’s solutions portfolio and overall brand value. Finally, it also showed that the cost to recreate these in a standalone company outweighed any benefits of separation.
The outcome of this exercise is that it reaffirms HP’s model and the value for our customers and shareholders. PSG is a key component of HP’s strategy to deliver higher value, lasting relationships with consumers, small- and medium-sized businesses and enterprise customers. The HP board of directors is confident that PSG can drive profitable growth as part of the larger entity and accelerate solutions from other parts of HP business.
PSG has a history of innovation and technological leadership as well as an established record of industry-leading profitability. It is the #1 manufacturer of personal computers in the world with revenues totalling $40.7 billion for fiscal year 2010.
“As part of HP, PSG will continue to give customers and partners the advantages of product innovation and global scale across the industry’s broadest portfolio of PCs, workstations and more,” said Todd Bradley, executive vice president, PSG. “We intend to make the leading PC business in the world even better.”