May 13, 2008 - HP and EDS signed a definitive agreement under which HP will purchase EDS at a price of $25.00 per share or an enterprise value of approximately $13.9 billion.

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, Texas. EDS will continue to be led after the deal closes by EDS chairman, president and chief executive officer Ronald A. Rittenmeyer.

"The combination of HP and EDS will create a leading force in global IT services," said Mark Hurd, HP's chairman and chief executive officer. "This reinforces our commitment to help customers manage and transform their technology to achieve better results."

Acquiring EDS advances HP's stated objective of strengthening its services business. The specific service offerings delivered by the combined companies are:

  • IT outsourcing, including data center services, workplace services, networking services and managed security;
  • Business process outsourcing, including health claims, financial processing, CRM and HR outsourcing;
  • Applications, including development, modernization and management; consulting and integration; and
  • Technology services.

The combination will provide extensive experience in offering solutions to customers in the areas of government, healthcare, manufacturing, financial services, energy, transportation, communications, and consumer industries and retail.

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