HP Acquires EDS for $13.9 Billion

Transaction expected to more than double HP's revenue from services.

by DE Editors | Published September 2, 2008

HP (Palo Alto, CA) completed its acquisition of EDS (Plano, TX), a $22 billion-plus global technology services, outsourcing, and consulting leader that pioneered the IT outsourcing industry.

The deal, priced at $25 a share for a total value of $13.9 billion, is the second largest ever in the technology industry behind HP's 2002 acquisition of Compaq, states the release. The two transactions bookend a growth strategy that has taken HP well beyond $100 billion in annual revenues to more than $125 billion in collective 2007 revenue, with the addition of EDS.

Phase One of HP's strategy has been about building the world's best hardware business. Phase Two has focused on developing a layer of leading software applications, with a particular emphasis on management automation, to optimize the performance of HP's hardware and differentiate it in the marketplace. Phase Three has addressed the services side with a goal of bringing the business into the forefront of global providers.

EDS expands HP's scale in vertical industries such as government and healthcare and enhances the global reach of HP's outsourcing service delivery capabilities, particularly in Europe and the Americas, states the release.

For details, visit HP.

Sources: Press materials received from the company and additional information gleaned from the company's website.

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