Systems integrator Computer Sciences Corp is planning to split its commercial technology division from its government business, according to unconfirmed reports.
Citing ‘people familiar with the matter’, Reuters revealed yesterday that confirmation of the split could come as early as next week, when CSC releases its financial earnings for fiscal 2015.
Like so many, CSC has struggled to move away from traditional technology infrastructure and sales to focus on software and services. Revenue has fallen short of estimates for the past two quarters, as the business desperately clambers to restructure.
The IT heavyweight has been actively trying to sell itself off for some time now, but Reuters’ source said that the business now sees a split in which shareholders would take ownership of stock in a new company as ‘the most attractive and tax-efficient transaction to pursue’.
CSC has drawn buy out interest from Cap Gemini, Hewlett-Packard and CGI Group, but according to Reuters’ source, none of them were able to meet valuation expectations.
Shares jumped as much as 7.1% on Thursday following the news, ending the day at $67.28.