EDS signs $1.1 b deal with Bank of America

NEW YORK: Electronic Data Systems Corp. said it has signed a $1.1 billion contract to integrate the system of the recently acquired FleetBoston Financial into Bank of America Corp.'s voice and data network.

The news, which comes less than a week after Moody's cut EDS' debt rating to junk, drove the stock up 2 percent.

EDS, the world's second-largest computer services provider, assumed responsibility for the Bank of America network in early 2003 as part of a 10-year, $4.5 billion deal.

The company said it will provide similar services, including secure telecommunications and networking solutions using voice-over IP technology and helpdesk services for the additional 1,600 banking center sites, plus ATMs and other locations.

As a part of the agreement, 150 former Fleet associates will transition to EDS.

EDS shares were up 34 cents at $17.48 in morning trading on the New York Stock Exchange.