CSC announces plans to split into two companies
Falls Church-based Computer Sciences Corp. (CSC) said Tuesday it plans to split itself into two publicly traded companies by October.
One company will serve commercial and government clients around the world and the other will serve public sector clients in the U.S.
“CSC began its turnaround three years ago,” CSC CEO, Mike Lawrie, said in a statement. “That turnaround has progressed strongly, and our focus now turns to positioning the business for long-term growth and leadership. The best way to accelerate that transformation is by separating the company into two businesses, each uniquely positioned to lead its market by focusing strongly on the needs of its clients.”
The commercial company has about $8.1 billion in revenue in Fiscal Year 2015, more than 1,000 customers and 51,000 employees. The public sector business has FY 2015 revenues of $4.1 billion and employs 14,000 people.
CSC says the separation will allow both companies to better meet customers’ needs, optimize their capital strategies and cost structures, recruit talent, and provide investors with long-term investment opportunities.
After the separation, CSC shareholders will own shares of both companies. The split is subject to customary closing conditions.
CSC provides information technology services and solutions. The company has approximately 70,000 employees and reported revenue of $12.2 billion for the 12 months ended April 3.