Yes, you heard it right. HP (Hewlett-Packard) is to Acquire EDS (Electronic Data Systems) for $13.9 Billion, while both of them are the giants in IT Outsourcing industry.
First, I must say that it’s hard to believe this. I just read the rumor of HP in talks to buy EDS for up to US$13 billion. So, I thought this might take a couple of days or weeks before it can be finalized as EDS didn’t say anything about this yet.
And when I came in to work last night, I realized this has became a reality. A lot of my colleagues are already talking about this. Well, details of the press kit is available here, http://www.hp.com/hpinfo/newsroom/press_kits/2008/eds/index.html
HP and EDS today announced that they have signed a definitive agreement under which HP will purchase EDS at a price of $25.00 per share, or an enterprise value of approximately $13.9 billion. The terms of the transaction have been unanimously approved by the HP and EDS boards of directors.
HP intends to establish a new business group, to be branded EDS – an HP company, which will be headquartered at EDS’s existing executive offices in Plano, Texas. HP plans that 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.
Acquiring EDS advances HP’s stated objective of strengthening its services business. The specific service offerings delivered by the combined companies are: 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 provide extensive experience in offering solutions to customers in the areas of government, healthcare, manufacturing, financial services, energy, transportation, communications, and consumer industries and retail.
So, shall I welcome back Mr. Brew to HP? Or, should he welcomes me to EDS?