"This transaction unlocks value for both companies," Whitman told CNBC's "Squawk on the Street." "It creates two new companies, so the enterprise services-CSC company will be a $26 billion pure-play industry leader and that's important because I think that part of the business is going to consolidate."
HPE announced Tuesday it would spinoff its enterprise services unit, which will merge with Computer Sciences.
The merger, which values HPE's services business at about $8.5 billion, is expected to be completed by the end of March 2017. HPE shareholders will own shares of both HPE and the combined company.