NEW YORK (TheStreet) -- Shares of Hewlett Packard Enterprise (HPE) - Get Report are spiking 11.88% to $18.18 in pre-market trading on Wednesday after announcing it will spin off its enterprise services segment and posting strong revenue for the 2016 first quarter after yesterday's market close.
The Palo Alto, CA-based technology enterprise company will spin off its enterprise services segment and merge it with Computer Sciences Corp.(CSC) in a transaction valued at $8.5 billion, according to am company statement.
Hewlett Packard Enterprise shareholders will own shares of Hewlett Packard as well as the combined company.
Additionally, the company reported revenue of $12.71 billion for the most recent quarter, which topped analysts' expectations for $12.34 billion.
Adjusted earnings of 42 cents per share were in line with analysts' projections.
For 2016, the company expects earnings per share between $1.85 and $1.95, while analysts are looking for $1.89 per share.