Computer Sciences Corp. said that it will split into two separate publicly traded companies---one focused on commercial businesses and another on the public sector.
The move also coincides with a special cash dividend of $10.50 a share when the companies split. CSC said the split will be complete by October.
For the last three years, CSC has restructured and revamped in what it called a "get fit" phase. CEO Mike Lawrie said CSC has completed its turnaround plans and a split made sense. "Our analysis shows significant benefits of going with a pure-play strategy," he said in a statement.
This pure play strategy is also being carried out by Hewlett-Packard, which is separating into two companies for better focus.
The two CSCs include:
- A commercial unit that will revolve around IT services and consulting. The company will have $8.1 billion in revenue, more than 1,000 customers and 51,000 employees.
- The public sector unit will provide services and infrastructure to federal and state governments and agencies. The unit will have revenue of $4.1 billion with 14,000 employees.
Separately, CSC reported fourth quarter earnings of $9 million, or 6 cents a share, on revenue of $2.91 billion, down 12.6 percent from a year ago. For fiscal 2015, CSC reported a loss of $8 million, or 6 cents a share. CSC's results include a bevy of restructuring charges.