HP announced that it 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 approximately $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.
“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.”
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.”
About HP
HP, the world’s largest technology company, provides printing and personal computing products and IT services, software and solutions that simplify the technology experience for consumers and businesses. HP completed its acquisition of EDS on Aug. 26, 2008. More information about HP (NYSE: HPQ) is available at http://www.hp.com/.
About HP Middle East
HP is the largest technology and solutions provider in the Middle East with 1100 employees and subsidiaries in Dubai, Abu Dhabi, Riyadh, Cairo, Ramallah, Qatar, Oman and 2 service Joint Ventures in Kuwait and Bahrain servicing the GCC, Egypt and the Levant. HP has been present in the Middle East since 1968 and opened its first regional office in 1994. HP Middle East is the market leader for enterprise, small and medium business and consumer technology products and offers a large portfolio of solutions and services in various business domains.
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