HP-EDS merger - Biggest Tech News Of 2008

[VelMurugan]

HP-EDS merger

In the month of May, HP acquired EDS at a price of $25 per share, or an enterprise value of approximately $13.9 billion.

The deal makes HP the second-largest player behind IBM, and is HP's largest acquisition since it acquired Compaq for $20 billion six years ago.

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, modernisation and management; consulting and integration; and technology services.

The combination aims to 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.

However, in the month of September HP announced that it will lay off about 24,600 employees over the next three years in an effort to streamline the company following its US$13.9 billion acquisition of Electronic Data Systems.

Source : IndiaTimes