HP completes EDS buyout
Announced in May, the $13.9 billion acquisition deal has now come to close
Following their decision in May to buy out Electronic Data Systems Corporation (EDS) for $13.9 billion, HP has announced that the acquisition is now complete.
The deal is the largest in the IT services sector in terms of value and the second largest in the technology industry, following HP’s acquisition of Compaq, which closed in 2002.
“This is a historic day for HP and EDS and for the clients we serve,” said Mark Hurd, HP chairman and chief executive officer. “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.”
The companies’ collective services businesses, as of the end of each company’s 2007 fiscal year, had annual revenues of more than $38 billion.
As a business group, EDS, an HP company, will be one of the market’s leading outsourcing services providers. As previously announced, the group will be led by Ron Rittenmeyer, president and chief executive officer, who had served as EDS’ chairman, president and CEO.
“Today marks the beginning of an exciting new era,” said Rittenmeyer.