HP completes $13.9bn acquisition of EDS

With this acquisition, initially announced on May 13 and valued at an enterprise value of approximately $13.9bn, 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 $38bn and 210,000 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."

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 & retail, communications, and media & entertainment.

As previously announced, the group is led by Ron Rittenmeyer, president and chief executive officer, who had served as EDS' chairman, president and CEO.

It remains based in Plano, Texas.

"Today marks the beginning of an exciting new era," said Rittenmeyer. "Clients will benefit from the breadth and depth of our solutions, our commitment to unsurpassed quality and our ability to provide truly global service delivery. With the resources of HP's renowned R&D and world-class technologies, we have an opportunity to truly redefine the technology services market."

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.

"The acquisition will have a positive impact on HP's clients worldwide." Said John Hoonhout, Managing Director, HP Middle East.

"Our clients in the Middle East will benefit from the combined scale and strength of our companies as they transform their technology environments. This is an important step forward in our ability to help them solve their challenges through practical innovations that deliver valuable business outcomes."