Today's annoncement confirmed a report of the split, first published in the Wall Street Journal on Sunday, that Hewlett-Packard Co unveiled its plans to split into two listed companies, separating its computer and printer sectors from its faster-growing corporate hardware and services operations.
HP said its shareholders would own a stake in both businesses through a tax-free transaction next year. Shares of the company rose 6.3 percent to $37.40 in premarket trading on Monday.
Each of the two sectors contribute about half of HP's current revenue and profit.
This step will result in a monumental reshaping of one of technology's most important pioneers, which still has more than 300,000 employees and is on track to book $112 billion in revenue this fiscal year.
The printing and personal computing business, to be known as HP Inc, will be led by Dion Weisler, currently an executive in that division.
HP's current chief executive, Meg Whitman, will lead the new Hewlett-Packard Enterprise, which will house the corporate hardware and services operations. She will also be chairman of HP Inc. Current HP lead independent director Patricia Russo will be chairman of the enterprise company.
Bill Hewlett and Dave Packard after WWII
Established by Bill Hewlett and Dave Packard in a Palo Alto, California garage in 1939, HP was one of the companies that shaped Silicon Valley and the PC revolution. In recent years, however, the firm has struggled to adapt to the shift toward mobile computing, and it has been overshadowed by younger rivals.
The announcement on Monday confirmed a report of the split, first published in the Wall Street Journal on Sunday.
HP is the latest in a number of companies, often under shareholder pressure, to spin off operations in an attempt to become more agile and to capitalize on faster-growing businesses.
Last week online auction company eBay Inc said it would spin off electronic payment service PayPal.
HP's stock had risen nearly 26 percent this year up to Friday's close.
