2a. Perspecta Stock Issues (May 2, 2023. Most recent update Feb 22, 2024)  Question? Email: info@hpalumni.org

If you ever worked for Perspecta: Info for Perspecta alumni

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.

Due to the breakup of HP, you may now have shares in HPInc, Hewlett Packard Enterprise, Agilent, Keysight, and DXC – held in multiple accounts – and may not have received cash payouts for Micro Focus or Perspecta. Your current cost basis depends on when you acquired stock as companies were spun out.

Plan administrators, transfer agents, and brokerages vary significantly in how (or if) they track gain/loss and cost basis for the many complex HP-related stock events – and what (if anything) they report to the IRS. (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. Stock 

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: Plan administrators, transfer agents, and brokerages vary significantly in how (or if) they track gain/loss and cost basis for the many complex HP-related stock events – and what (if anything) they report to the IRS. Issues with major brokers

Peraton stock history

Sequence of related stock events from HPAA's Complete Stock Decoder Table:

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.

To check for lost stock and uncashed checks: https://www.hpalumni.org/Unclaimed

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

To check for lost stock: Perspecta is incorporated in Delaware

PRSP Price Chart Note: Stock price charts do not always accurately reflect stock splits and other events.

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