Signed Agreement $13.9 billion Deal: HP purchase EDS at a price of $25.00 per share
Yesterday we reported that HP was to buy EDS where we said “HP to Buy EDS: Would this mean the ability to compete against rivals IBM Corp? (Read Here), well today we have the latest information that HP and EDS have announced that they have finally signed a definitive agreement where HP will purchase EDS at a price of $25.00 per share which actually means an enterprise of around $13.9 billion; this has been unanimously approved by the boards of directors of HP and EDS.
This new transaction is expected to close in the second half of calendar year 2008 which will more than double HP’s services revenue at $16.6 billion in fiscal 2007, as of the end of each company’s 2007 fiscal year where annual revenues of over $38 billion and 210,000 employees doing business in over 80 countries. HP are intending to establish a new business group to be branded EDS and HP company which will have their head quarters at EDS’s existing executive offices in Plano, Texas. HP do plan on EDS to continue to be led after the deal closes by EDS Chairman, President and Chief Executive Officer Ronald A. Rittenmeyer who will indeed join HP’s executive council and report to Mark Hurd, HP’s chairman and chief executive officer.
HP to Acquire EDS for $13.9 Billion, Transaction expected to more than double HP’s revenue from services, furthering its standing as world’s largest technology company and EDS shareholders to receive $25.00 per share in cash for each EDS share, this is all good news where the company will definitely be able to compete even more so now with rivals. The combination of the two companies HP and EDS will bring a force of leading global IT services which means a stronger business partner, most competitive portfolio of products and services in the industry and delivering customers the broadest services.
Looks like technology will only get stronger; Rittenmeyer said “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’s 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. In addition, our Agility Alliance will be significantly strengthened.”
Because HP have acquired EDS this actually advances the HP objectives which even more so makes the company so much stronger in the way of its services business and the new offerings delivered by the two companies mean including data center services, IT outsourcing, networking services and managed security, workplace services, CRM and HR outsourcing; applications, including development, business process outsourcing, modernization and management; consulting and integration; and technology services, solutions to customers in the areas of government, healthcare, manufacturing, financial services, energy, transportation, communications, and consumer industries and retail and so much more.