Electronic Data Systems to be acquired by HP

Hewlett Packard has announced that they are going to acquire computer consulting firm Electronic Data Systems.

The deal would be worth around USD 14 billion and it would help them compete more efficiently against IBM.

This would be the largest acquisition by HP ever since they acquired Compaq few years ago.

HP would be paying around $25 for each share of EDS common stock.

HP said that after the acquisition is complete, new services group will maintain the EDS branding.

It would be called “EDS — An HP Company”. It would continue to operate from Plano, Texas.

HP further said that current EDS CEO Ronald A. Rittenmeyer will continue to lead the company.

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