HP completes $13.9 billion acquisition of EDS

27 August 2008

Hewlett-Packard yesterday announced having completed its acquisition of Electronic Data Systems Corporation (EDS), creating a leading force in IT and consulting services.

The deal, which was initially announced on 13 May (See: HP set to acquire EDS for over $12 billion)  was approved by the European Commission and by EDS shareholders in July. The acquisition also passed the regulatory waiting period in the US without a request for more information by the Justice Department or Federal Trade Commission.

The company says with this acquisition, valued at an enterprise value of approximately $13.9 billion, HP now has one of the technology industry's broadest portfolios of products, services and end-to-end solutions . (See: HP snaps at IBM's heels with EDS merger) The combined offerings will focus on helping clients accelerate growth, mitigate risks and lower costs.

Mark Hurd, chairman and chief executive officer of Hewlett-Packard 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."

As a business group, EDS, now an HP company, will be one of the market's leading outsourcing services providers - with the ability to provide complete lifecycle capabilities in health care, government, manufacturing, financial services, energy, transportation, consumer and retail, communications, and media and entertainment.

EDS chairman, president and CEO, Ron Rittenmeyer will continue to lead with key executives from EDS continuing in their roles as vice presidents and reporting to him. They would continue overseeing various regions of the world as well as functions such as global sales, transformation, outsourcing and marketing.