Adage Capital Partners GP L.L.C. purchased a new stake in shares of Computer Sciences Corp. (NYSE: CSC) during the third quarter according to its most recent filing with the SEC. The firm purchased 525,000 shares of the company’s stock, valued at approximately $27,410,000.
Computer Sciences posted better-than-expected second-quarter of fiscal 2017 results with increasing second quarter revenues year over year. The company’s decision to incorporate itself with Hewlett Packard Enterprise Company’s HPE business will likely open new areas of growth. The deal will unify Computer Sciences’ strength in insurance, healthcare and financial services with Hewlett Packard Enterprise’s expertise in industries such as transportation, technology, media, and telecom.
After merging, the combined entity will become the world’s second largest IT services company and will generate revenues of approximately $26 billion.
According to Zacks, “Computer Sciences is focusing on the cyber business, cloud computing market and Big Data business. A significant portion of the company’s cyber business is contributed by the federal government and, to an extent, the commercial sector. The company mainly focuses on providing backup IT support to federal government departments, and some other companies. Worldwide IT spending is projected to total $3.46 trillion in 2017, a 2.7% increase from $3.38 billion in 2016, as per a recent report from information technology research and advisory firm, Gartner Inc. Computer Sciences is expected to benefit from this growth.”