Decision follows “evaluation of strategic alternatives”.
HP have today announced the Personal Systems Group (PSG) will remain part of the company following “completing its evaluation of strategic alternatives”. The process involved identifying “the extent to which PSG contributes to HP’s solutions portfolio and overall brand value” and that “the cost to recreate these in a standalone company outweighed any benefits of separation”.
HP’s earlier announcement that it may sell the division was met with much criticism, and caused severe damage to HP stocks as investors balked. Leo Apotheker, who had spearheaded the restructuring proposal, has since been replaced by former eBay CEO Meg Whitman.
Commenting on the latest announcement, Whitman said: “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. HP is committed to PSG, and together we are stronger.”
In another reversal of Apotheker’s strategies, Whitman previouslu announced that HP would avoid making any more large acquisition moves after its recent $10 billion purchase of UK services company Autonomy.
Todd Bradley, Executive Vice President, PSG, added: “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. We intend to make the leading PC business in the world even better.”
HP is currently a leading manufacturer of PCs, with revenues totalling $40.7 billion (€28.7 billion) for fiscal year 2010.