HP seals mammoth EDS buy

Three months after it was initially announced, Hewlett-Packard has completed its $13.9bn acquisition of IT services giant EDS and outlined details of its plans for the unit.

Three months after it was initially announced, Hewlett-Packard has completed its $13.9bn acquisition of IT services giant EDS and outlined details of its plans for the unit.

Texas-based EDS will remain in its current location and will be headed up by former EDS chairman, president and CEO Ron Rittenmeyer, HP said. Rittenmeyer will keep the bulk of EDS' management team on board, although the squad will be joined by some HP staff, among them HP outsourcing services senior vice president Andy Mattes.

HP now intends to shift its outsourcing services operations, previously run by its Technology Solutions Group (TSG), and some consulting and integration business over to EDS. This will allow TSG - currently headed up by Ann Livermore - to focus on servers, storage, software and various other technology services.

HP has claimed that by value the deal was the largest ever in the IT services sector, and the second largest in the industry at large - right behind its own 2002 acquisition of Compaq.

Combined, HP's and EDS' services businesses have around 210,000 employees worldwide and joint annual revenues of over $38bn.

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