Oracle’s stock was up as much as 7.7 percent on the news that former HP CEO Mark Hurd was hired as co-President. He will be co-President along with Safra Catz. Former co-President Charles Phillips is out.

So why did Oracle (Larry Ellison) hire Mark Hurd? Simple. Look at the chart above and see what he has done for HP stock, shareholders and market share. When Hurd took over HP was doing about $80 billion in annual sales versus $95 billion for IBM one of its main competitors.

By the time Hurd was fired the company was doing $115 billion in annual sales compared to $96 billion for IBM. Hurd was able to grow the top line impressively and do so in an extremely tough recession. This is what the Oracle board and Larry Ellison hope he will do for Oracle. That is also what the market believes too that is why the stock is up 7.7 percent on the news of his appointment.

Also Hurd understands HPs distribution channel which will be useful to Oracle. Oracles plans to sell SUN products into the same channel.

Finally, Hurd was not only grew the top line the also trimmed the fat from the company. A skill that would come handy at Oracle over the coming months as it sheds former SUN employees and Oracle employees.

On the other hand shares of HP are down 14 percent since Hurd’s resignation on August 6 after a probe into sexual harassment allegations.