Hewlett-Packard has confirmed of buying outsourcing giant Electronic Data Systems for $25 per share. This works out to around $13.9 billion. The deal has been signed off and now it is pending before government regulators and EDS shareholders for approval.
Rumours of the deal surfaced yesterday, and HP has confirmed that the purchase was unanimously approved by both boards of directors.
HP is world’s no.1 PC manufacturer while EDS is a leading global technology services company delivering business solutions.
According to the deal EDS will continue to operate under the same brand and with the same management team but will report to the HP board.
HP Chairman Mark Hurd said:
The combination of HP and EDS will create a leading force in global IT services. Together we will be a stronger business partner, delivering customers the broadest, most competitive portfolio of products and services in the industry. This reinforces our commitment to help customers manage and transform their technology to achieve better results.
According to EDS President Ronald Rittenmeyer:
First and foremost this is a great transaction for our stockholders, providing tremendous value in the form of a significant premium to our stock price.
It is also beneficial to our customers, as the combination of our two global companies and the collective skills of our employees will drive innovation and enhance value for them in a wide range of industries.
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