Tuesday, May 13, 2008

HP Buys EDS For $13.9B

Hewlett-Packard Co. has agreed to acquire Texas-based IT outsourcing firm Electronic Data Systems Corp., in a deal worth $13.9 billion, the firm said this morning. According to HP, it will pay $25.00 per share in cash for EDS, which provides IT outsourcing services to businesses. According to the firms, the deal has been unanimously approved by their boards of directors, and is expected to close in the second half of calendar 2008. HP said it will establish a new company, branded EDS - an HP Company, based in EDS' existing offices in Plano, Texas. Originally founded in 1962 by eccentric Texas millionaire H. Ross Perot, EDS is publicly traded on the New York Stock Exchange and is headquartered in Plano, Texas. Hewlett-Packard is based in Palo Alto, Calif.