HP completes $13.9 bn EDS acquisition

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

The acquisition was initially announced on May 13 and has secured an enterprise value of approximately $13.9 billion, said a press release.

The combined offerings are focused on helping clients accelerate growth, mitigate risks and lower costs.

The company statement mentioned that, the acquisition is, by value, the largest in the IT services sector and the second largest in the technology industry.

The company’s annual revenue for the fiscal year 2007 was reported as $38 billion. It heads over 2,10, 000 employees, operating in more than 80 countries.

Mark Hurd, HP chairman and chief executive officer, said, “This is a historic day for HP and EDS and for the clients we serve. Independently, each company is a respected industry leader. Together, we are a global leader, with the capability to serve our clients – whatever their size, location or sector – with one of the most comprehensive and competitive portfolios in the industry.”

HP’s technology solutions group (TSG) will shift its outsourcing, consulting and integration services, to the EDS. The TSG would 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.