Hewlett Packard (HP) confirmed today that it will be buying over IT outsourcer Electronic Data Systems (EDS) for 13.9 billion dollars.
The deal has been approved by both sides and expected to close in the second half of 2008.
HP expects the acquisition to more than double its services revenue, which amounted to 16.6 billion in 2007.
With the merger, both companies plan to strengthen their service offerings in areas such as IT outsourcing, including data center services, workplace services, networking services and managed security; business process outsourcing, including health claims, financial processing, CRM and HR outsourcing; applications, including development, modernization and management; consulting and integration; and technology services.
The combination will also see both companies expand their reach into various industries including government, healthcare, manufacturing, financial services, energy, transportation, communications, and consumer industries and retail.
The new business group will be branded EDS - an HP company and headquartered at EDS's existing executive offices in Plano, Texas.
EDS will continue to be led after the deal closes by EDS Chairman, President and Chief Executive Officer Ronald A. Rittenmeyer, who will join HP's executive council and report to Mark Hurd, HP's chairman and chief executive officer.
"The combination of HP and EDS will create a leading force in global IT services," said Hurd.
"Together, we will be a stronger business partner, delivering customers the broadest, most competitive portfolio of products and services in the industry. This reinforces our commitment to help customers manage and transform their technology to achieve better results." |
