NEW YORK (TheStreet) -- Hewlett Packard Enterprise (HPE) - Get Report stock is up 8.80% to $17.68 in after-hours trading on Tuesday after announcing that it will spin off its enterprise services unit and reporting better-than-expected revenue for the second quarter.
The technology enterprise company will spin off its enterprise services unit and merge it with Computer Sciences Corp. (CSC)in a transaction valued at $8.5 billion, according to a company statement.
Hewlett Packard Enterprise shareholders will own shares of Hewlett Packard as well as the combined company.
The transaction is expected to be completed in March 2017.
Additionally, Hewlett Packard Enterprise reported better-than-expected revenue and in-line adjusted earnings for the 2016 second quarter.
Earnings of 42 cents per share met analysts' estimates, while revenue of $12.71 billion beat analysts' expectations for $12.34 billion.
For the full year, the company expects that earnings will range between $1.85 and $1.95 per share, while analysts are looking for $1.89 per share.