NEW YORK (TheStreet) -- Shares of Computer Sciences Corp. (CSC) are soaring by 19.21% to $42.50 in after-hours trading on Tuesday, after the provider of information technology announced its merger with Hewlett Packard Enterprises' (HPE) enterprise services segment.
The combined company is expected to have annual revenues of $26 billion and more than 5,000 clients, according to a statement released after today's market close.
"The strategic combination of the two complementary businesses will create one of the world's largest pure-play IT services companies, uniquely positioned to lead clients on their digital transformations," Tysons Corner, VA-based CSC stated.
The merger is expected to be completed by the end of March 2017 and is subject to approval from shareholders and regulators.
About 2.43 million of CSC's shares were traded today compared to its average volume of 1.03 million shares per day.
Shares of HPE are jumping by 9.54% to $17.80 in after-hours trading on Tuesday.
Separately, TheStreet Ratings Team has a "Buy" rating with a score of B- on CSC stock.
The company's strengths can be seen in multiple areas, such as its compelling growth in net income, growth in earnings per share, largely solid financial position with reasonable debt levels by most measures and notable return on equity.
The team believes its strengths outweigh the fact that the company has had lackluster performance in the stock itself.
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
You can view the full analysis from the report here: CSC