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2a. Perspecta Stock Issues 

Part of HPAA's Stock Recovery Process: Employee Stock

(May 2, 2023) Website operated by volunteers. Not officially endorsed or supported.

Stock Menu. Keep up with HP/HPE-related stock issues: Join at no charge. Question? Email: info@hpalumni.org

If you received a letter from Social Security entitled "Potential Private Retirement Benefit." How to decode the letter and who to contact: Potential Benefit letter

If you have paper stock certificates. What to do: Stock Certificates

If you ever worked for Perspecta, also see this page: Perspecta


Taxes on purchase of Perspecta by Peraton

Cost basis for any DXC stock acquired through ownership of HP stock and the subsequent breakup of HP.

You may now have stock in HP, HPE, Agilent, Keysight, and DXC in various accounts -- and may have missed cash payouts for Perspecta and Micro Focus. (The companies currently include: HP Inc. Hewlett Packard Enterprise, DXC, Micro Focus, Agilent, and Keysight. Details: HP Spinoff Timeline )

Your Perspecta cost basis depends on the chain of spinoffs as HP was broken up: HP spun off HPE on 2015-10-21. HPE spun off DXC on 2017-03-20. DXC spun off Perspecta (PRSP) on 2018-05-25.

On 2021-05-06, Perspecta was bought by Peraton. PRSP stock was retired. Peraton paid $29.35 cash in exchange for each Perspecta share -- a 49.7% premium over last closing price before public reports.

PRSP shares have vanished from your account. Either cash was paid into your brokerage cash account or a check was mailed by approx. 2021-06-02.

Step 1. Determine the average per-share cost basis for all the HPE stock you owned at the time of the Perspecta buyout.

An HP Alumni team has developed a step-by-step process to determine what stock you should have, find it, and check your cost basis records. Stock Recovery Process

If you don't have good records -- or did not input your lot-and-cost information into your broker's system -- you can use our spreadsheet to estimate your cost basis for most HP/HPE-related stocks for any span of HP employment from 7/1/1959 through the 11/1/2000 plan changeover.  Stock Spreadsheets

Step 2. Use your average per-share cost basis for your HPE stock and the information on this page to determine the cost basis of your Perspecta shares. What stock should I have? 

(A minor factor: At several stages, the number of shares you received was rounded down -- with cash paid for the fractional share.)

DXC's Tax Basis Worksheet recommends allocating 87.06% to DXC and 12.94% to PRSP. (More info from DSC: Perspecta Merger Tax Documentation.)

Note: Members report that brokerages, plan administrators, and transfer agents vary (sometimes dramatically) in how (or if) they make gain/loss and cost basis calculations and in what (if anything) they report to the IRS. Members have reported variations between Fidelity, Morgan Stanley, Merrill Lynch, Schwab, TDAmeritrade, and Vanguard


Peraton stock history

Sequence of related stock events from HPAA's detailed Stock Decoder table:

2008-08-26

HP bought EDS. EDS shareholders received $25 in exchange for each EDS share. EDS stock was retired.

2015-10-21

HP spun off Hewlett Packard Enterprise.. HPQ shareholders received 1 share of HPE per HPQ share owned. Hewlett-Packard Co. renamed HP Inc.

2017-03-20

HPE Enterprise Services business was spun off and merged with CSC, creating DXC. HPE shareholders received 0.086 share of DXC per HPE share owned.

2018-05-25

DXC U.S. Public Sector business was spun off and merged with two other companies, creating Perspecta. DXC shareholders received 0.5 share of Perspecta per DXC share owned.

2021-05-06

Perspecta bought by Peraton. Peraton paid $29.35 cash in exchange for each Perspecta share -- a 49.7% premium over last closing price before public reports. PRSP shares have vanished from your account. Either cash was paid into your brokerage cash account or a check was mailed by approx. 6/2/21.


2021: Perspecta purchased by Peraton - Details

May 6, 2021. PRSP was bought by privately-held Federal IT contractor Peraton. Peraton paid $29.35 cash in exchange for each Perspecta share -- a 49.7% premium over last closing price before public reports. PRSP shares have vanished from your account. Either cash was paid into your brokerage cash account or a check was mailed by approx. 6/2/21. Some non-US members report that their bank charged a very high currency conversion fee when they deposited the check.

Perspecta had 14,000 employees. Peraton previously bought part of Northrop Grumman. The resulting company has 22,000 employees -- 7,500 with Top Secret clearance. VirginiaBusiness news story    new company structure

It does not appear that small shareholders were individually notified of the completion of the sale. News Release

Perspecta tax documentation: https://investors.dxc.com/resources/spin-off-tax-documentation

What happens next depends on where your PRSP shares are held -- which, unless you moved them, will be at the same place your DXC shares are held (because  DXC and Perspecta have chosen the same transfer agent.)

- If held in a brokerage account (Fidelity, Merrill Lynch, etc.), the shares vanished from the stock section of your account and cash was added to the cash section of your account.
Notation on a typical brokerage account: "Perspecta Inc Reg Shares Cash merger pay date 05/07/2021"
If questions, contact your broker.

- If held by Perspecta's transfer agent (EQ Equiniti shareowneronline.com), the shares vanished from your EQ account and a check is being mailed to your address of record:
Check wording: "05/20/2021. Cash Entitlement on Exchanged Shares... merger of Jaguar Merger Sub Inc. and Perspecta Inc.. 
If questions on shares held at the transfer agent, contact EQ Shareowner Services at 1-800-468-9716 or 1-651-450-4064 -- M-F 7am to 7pm Central time.


Previous event: 2018 Perspecta spun off DXC - Details

On May 25, 2018, DXC spun off its 6,500-employee U.S. Public Sector Business and merged it with 3,800-employee intelligence community contractor Vencore and 3,700-employee background investigation firm KeyPoint to create Perspecta. DXC Notice

 If you owned DXC shares on May 25, 2018, you were issued shares in a new company called "Perspecta" -- with corresponding adjustment in value of your DXC shares. (This is not reflected in the HPAA's stock cost basis spreadsheets.) Stock details - 5/7/18 (including DXC's statement that the transaction is tax-free and a suggested "Tax Basis Worksheet')   SEC filing

Perspecta was a completely separate company from DXC -- not a legal successor to DXC.

To check for lost stock: Perspecta is incorporated in Delaware


Stock: You may now have stock in HP, HPE, Agilent, Keysight, and DXC in various accounts -- and may have missed cash payouts for Perspecta and Micro Focus. How many shares of which companies should I have? How much cash should I have received? Stock Recovery Process


Background:  Announcement - 10/11/17 and Transcript      Press release - 3/8/18      Press release - 6/1/18

DXC Notice

Cost basis:

"...you will not recognize income, gain or loss as a result..."  DXC/Perspecta tax basis letter 

DXC Investor Relations:  https://investors.dxc.com/investor-relations 

From the "Resources" dropdown on the right, select "FAQs."

Selecting "Spin-off Tax Documentation" gets you to the CSC/HPE and Perspecta tax documentation: https://investors.dxc.com/resources/spin-off-tax-documentation

Finally, DXC's "Tax Basis Worksheet" for the Perspecta deal: https://s27.q4cdn.com/120381974/files/doc_downloads/2021/06/Tax-Basis-Worksheet.pdf

"DXC assumed $600 million of net pension liability and $400 million of existing debt..." April 3, 2017 HPE press release on completion

Your broker may have used a different formula than the one suggested in the Cost Basis letter provided by the company -- resulting in a somewhat different value. Check your brokerage account online -- or by examining a recent account statement -- to view your holdings in each stock going forward.

Note 1. Yahoo Finance charts do not always accurately reflect stock splits and other events.

Stock information and contacts:

Perspecta transfer agent (and distribution agent for the spinoff and merger) is Equiniti.  (Source)
EQ Shareowner Services
PO Box 64874
St. Paul, MN 55164-0874
Phone: 1-800-468-9716

DXC: Check both official DXC pages:  Primary      Employees and Alumni

Unexpired HPE options: If you had unexpired HPE stock options and were transitioned to DXC, the HPE options in your Merrill Lynch account may have vanished in April 2017 -- with no notification. The HPE options were converted to DXC options and placed in a new Fidelity account. Presumably, something similar will be done for people transferred to Perspecta.

Fidelity: :If you have an existing HP 401(k) or personal brokerage account at Fidelity, go to http://netbenefits.com and use your existing username and password. Otherwise, call 1-800-457-4015 (If no password, keep hitting #.) (Outside US 1-508-787-9902 collect.) Fidelity (Don't go to a local Fidelity office.)      

Peraton corporate address:   (Source)
12975 Worldgate Drive
Herndon, VA 20170-6008
P (703) 668-6000


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