HP closes EDS purchase

Source: Exec Digital USA

Date :8/26/2008 4:28:05 AM

The global computer and printer marker has confirmed it has closed the US$13.9 billion purchase of Electronic Data Systems Corp.

Hewlett-Packard has announced today, August 26, it has closed the US$13.9 billion purchase of EDS, a deal that HP hopes will help it better compete with IBM.

“EDS will combine powerfully within HP’s overall strategy and business mix,” said Mark Hurd, Chairman and CEO of HP. “Together, HP and EDS deliver one of the most complete and competitive portfolios in the industry.”

“Our combination makes too much sense not to make it a reality,” said Ron Rittenmeyer, Chairman, President and CEO of EDS.

“At EDS, we gain access to the scale and resources of an industry giant, providing outstanding new opportunities for our clients, while at the same time delivering excellent value to our shareholders. HP gains from our best-in-class capabilities, end-to-end global delivery network and track record of providing great service.”

The deal, priced at US$25 a share, is the second largest ever in the technology industry behind HP’s 2002 acquisition of Compaq.