Tuesday, August 26, 2008

HP Wraps Up $13.9B Purchase of EDS

Palo Alto-based computer consulting and manufacturing giant Hewlett-Packard announced today that it has concluded its record-setting acquisition of Electronic Data Systems Corp. HP said the $13.9 billion deal— first reported on May 13—represents the largest transaction, in terms of value, in IT services sector history. It is also the technology industry's second largest—only HP's 2002 purchase of Compaq is greater. HP noted that its merger with the Texas-based IT consulting firm results in a company boasting some 210,000 employees and annual revenues in excess of $38 billion. HP said EDS will operate as a separate business group and will remain headquartered in Plano, Texas. Ron Rittenmeyer, who formerly chaired EDS’ board, will lead the unit as president and chief executive officer. HP added that its Technology Solutions Group will transfer to EDS its outsourcing services operations and portions of its consulting and integration activities.