In 2014, Hewlett-Packard announced that it was splitting into two separate companies: Hewlett Packard Enterprise, selling servers and enterprise services, and HP Inc, selling PCs and printers. That split completed last year at the cost of more than 30,000 jobs. In a surprise announcement today, the company is about to embark on a second split: Hewlett Packard Enterprise is spinning off its IT services business.

The low-margin outsourced IT services business, which HP got into with its $ 14 billion acquisition of EDS in 2008, is to be merged with Computer Sciences Corp (CSC) to create a new company currently known only as SpinCo. HPE will own half of the new company, HPE CEO Meg Whitman will be on the new company’s board, and HPE and CSC will each nominate half of the board members. CSC’s current CEO, Mike Lawrie, will become CEO of the new company.

HPE says that the deal will save around $ 1 billion in operating costs. HPE shareholders will own shares in both companies, owning half of the combined company, with their stake valued at around $ 4.5 billion. They’ll also receive a $ 1.5 billion cash dividend. Additionally, the merger will see some $ 2.5 billion in debt moved to SpinCo’s books.