EDS and HP Sign Merger Agreement
Earlier this week, Hewlett Packard and EDS announced their definitive merer agreement whereby HP will wholly acquire EDS. The total deal amounts to approximately $13.9 billion. This plans have already been approved by the Boards for both companies. The merger should be completed during the second half of 2008, as described in the press release issued by EDS.
A new business group will be established by HP through the deal, to be called EDS. This new business will be established at the Plano, Texas headquarters of EDS. The new organization will be led by Ronald A. Rittenmeyer, the current Chairman, President, and CEO of EDS.
The acquisition of EDS will assist with HP’s goal of further developing the HP services business. Specific to the healthcare industry, the company will expand its offering of business process outsourcing, such as for the support of health claims. The combined experience of the two organizations will further support development of solutions that integrate up-to-date technology offerings for the entire healthcare arena.
May 14, 2008 Related topics: Mergers & Acquisitions