CHSH advised HPE on the merger between CSC and the Enterprise Services segment of HPE. Our advice included designing the structure of the ‘spin-merger’ at the local level and advising the client on all aspects of the transaction, including with regard to corporate, commercial and employment law, as well as on IP separation matters and implementing a local demerger, a business asset transaction and drafting all transaction documents. The local transaction included the demerger of one of the local subsidiaries, involving the transfer of over 3000 employees and significant assets and contracts, as well as a business asset transaction in relation to the second HPE local entity. CHSH also advised HPE on the incorporation of new entities, data protection issues and regulatory matters.
The transaction was very challenging and innovative due to the complexity of the separation, which involved more than 170 countries. The team at CHSH Bulgaria coordinated several work streams at the local and global level. The transaction was not a simple demerger or sale of a business unit, but a global separation of part of the entire business of HPE, which meant that for each entity in every jurisdiction the Enterprise business had to be carved out and transferred to a completely new company structure. In the end, two completely separated HPE company structures were established, one of which was merged with CSC, which subsequently became what is now known as DXC.technology.