HP Completes $13.9 Billion Acquisition Of EDS

HP has completed its acquisition of Electronic Data Systems Corporation (EDS), creating a leading force in technology services.

With this acquisition, initially announced on May 13 and valued at an enterprise value of approximately $13.9 billion, HP has a broad portfolio of products, services and end-to-end solutions to offer customers. The combined offerings are focused on helping clients accelerate growth, mitigate risks and lower costs.

The acquisition is, by value, the largest in the IT services sector and the second largest in the technology industry, following HP’s acquisition of Compaq, which closed in 2002. The companies’ collective services businesses, as of the end of each company’s 2007 fiscal year, had annual revenues of more than $38 billion and 210,000 employees, operating in more than 80 countries.

“This is a historic day for HP and EDS and for the clients we serve,” said Mark Hurd, HP chairman and chief executive officer. “Independently, each company is a respected player. Together, we aim to be a true global player, with the capability to serve our clients – whatever their size, location or sector – with a comprehensive and competitive portfolio.”

More from Biztech

Future Group - Reliance Retail Deal approved by CCI RBI ban on cryptocurrencies takes effect; prohibition could force investors to tap the black market

As a business group, EDS, an HP company, will be an outsourcing services provider – with the ability to provide complete lifecycle capabilities in healthcare, government, manufacturing, financial services, energy, transportation, consumer and retail, communications, and media and entertainment. As previously announced, the group is led by Ron Rittenmeyer, president and chief executive officer, who had served as EDS’ chairman, president and CEO. It remains based in Plano, Texas.

“Today marks the beginning of an exciting new era,” said Rittenmeyer. “Clients will benefit from the breadth and depth of our solutions and our ability to provide truly global service delivery. With HP’s renowned R&D resources and technologies, we have an opportunity to truly redefine the technology services market.”

HP’s Technology Solutions Group (TSG) will shift to EDS its outsourcing services operations, as well as portions of its consulting and integration activities. TSG will focus on servers, storage, software and technology services, such as installing, maintaining and designing technology systems for customers, as well as certain consulting and integration services.

“Clients will benefit from the combined scale and strength of our companies as they transform their technology environments,” said Ann Livermore, executive vice president, TSG, HP. “This is an important step forward in our ability to help them solve their challenges through practical innovations that deliver valuable business outcomes.”