August 26, 2008 -- (WEB HOST INDUSTRY REVIEW) -- According to reports on Tuesday, technology giant Hewlett-Packard (hp.com) has completed its acquisition of Electronic Data Systems (eds.com) for approximately $13.9 billion.
The acquisition, which was initially announced in May with a starting bid of about $12.6 billion, will give the world's largest maker of personal computers a significant chunk of the data management and enterprise consulting business.
On the HP website, the company says this acquisition is, by value, the largest in the IT services sector and the second largest in the technology industry, following HP's 2002 acquisition of Compaq for $19 billion.
This HP/EDS deal is expected to more than double HP's revenue from services, and should create a realistic challenger to IBM in the services space. According to reports on ZDNet, HP's services business is anticipated to have an annual revenue of more than $38 billion with 210,000 employees, operating in more than 80 countries.
"This is a historic day for HP and EDS and for the clients we serve," says Mark Hurd, HP chairman and CEO in a statement. "Independently, each company is a respected industry leader. Together, we are a global leader, with the capability to serve our clients - whatever their size, location or sector - with one of the most comprehensive and competitive portfolios in the industry."
As previously announced, HP says the combined services business will be headquartered at EDS's Plano, Texas headquarters and led by EDS chairman and CEO Ronald A. Rittenmeyer. HP's Technology Solutions Group, the company's current services unit, will shift its outsourcing services operations to EDS, as well as portions of its consulting and integration activities.
Some of the new appointments - comprised of both EDS and HP executives - that will be reporting to Rittenmeyer include Michael Coomer, senior VP of Asia Pacific and Japan; Jeff Kelly, senior VP of Americas; Joe Easor, senior VP of transformation; Bobby Grisham, senior VP of global sales; Mike Koehler, senior VP of infrastructure technology outsourcing and business process outsourcing; Andy Mattes, senior VP of application services; and Maureen McCaffrey as VP of worldwide marketing.
Meanwhile, HP's TSG will focus on servers, storage, software and technology services, such as installing, maintaining and designing technology systems for customers, as well as certain consulting and integration services.
"In a nutshell, EDS will specialize in outsourcing and relationship management. HP will handle the information systems under the hood," says ZDNet.
HP will be holding a live video webcast of is upcoming analyst meeting on September 15 where Hurd and other executive members will discuss HP's opportunities in the enterprise market, including EDS.
