HP has completed its acquisition of Electronic Data Systems Corporation (EDS), creating a leading force in technology services.
With this acquisition, initially announced on May 13 and valued at an enterprise value of about $13,9-billion, HP has one of the technology industry's broadest portfolios of products, services and end-to-end solutions. The combined offerings are focused on helping clients accelerate growth, mitigate risks and lower costs.
The acquisition is, by value, the largest in the IT services sector and the second largest in the technology industry, following HP's acquisition of Compaq, which closed in 2002. The companies' collective services businesses, as of the end of each company's 2007 fiscal year, had annual revenues of more than $38-billion and 210 000 employees, operating in more than 80 countries.
As a business group, EDS, 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.
The group is led by Ron Rittenmeyer, president and CEO, who had served as EDS' chairman, president and CEO. It remains based in Plano, Texas.
HP's Technology Solutions Group (TSG) will shift to EDS its outsourcing services operations, as well as portions of its consulting and integration activities. TSG will 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.