Hewlett Packard Enterprise Co. (NYSE: HPE) will merge its technology-services division with Computer Sciences Corp. (NYSE: CSC), moving out of another shrinking business as it focuses on selling hardware and software to corporations.

The combination will be a stock-for-stock exchange with an expected value for shareholders of $8.5 billion, according to a statement Tuesday. CSC Chief Executive Officer Mike Lawrie will lead the new company. Shares of HP Enterprise, which also reported better-than-estimated second-quarter earnings, jumped 11 percent in extended trading, and CSC stock surged 23 percent.

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