Hewlett-Packard Co. and Electronic Data Systems Inc. today announced that they have signed a definitive agreement u...
May 13, 2008
Hewlett-Packard Co. and Electronic Data Systems Inc. today announced that they have signed a definitive agreement under which HP will purchase EDS at a price of US$25 per share, or an enterprise value of approximately US$13.9 billion.
The terms of the transaction have been unanimously approved by the HP and EDS boards of directors.
The transaction is expected to close in the second half of calendar year 2008 and to more than double HP’s services revenue, which amounted to US$16.6 billion in fiscal 2007.
The companies’ collective services businesses, as of the end of each company’s 2007 fiscal year, had annual revenues of more than US$38 billion and 210,000 employees, doing business in more than 80 countries.
HP intends to establish a new business group, to be branded EDS an HP company, which will be headquartered at EDS’s existing executive offices in Plano, Tex.
EDS will continue to be led after the deal closes by chairman, president and CEO Ronald A. Rittenmeyer, who will join HP’s executive council and report to Mark Hurd, HP’s chairman and CEO.