August 29, 2008
Hewlett-Packard Completes Purchase of Electronic Data Systems
Hewlett-Packard completes purchase of Electronic Data Systems
LOS ANGELES, Aug. 27 (Xinhua) -- Hewlett-Packard (HP) has completed its purchase of Electronic Data Systems (EDS), the computer giant's biggest acquisition since HP bought Compaq for nearly 20 billion dollars in 2002, it was reported on Wednesday.The 13.9-billion-dollar deal, completed on Tuesday, will expand HP's business in the lucrative field of technology consulting and outsourcing services, according to the San Jose Mercury News.
But it remained unknown what the future holds for nearly 140, 000 EDS employees, the report said.
HP Chief Executive Mark Hurd has promised to cut costs and improve efficiency at EDS, based in Plano, Texas, indicating some future layoffs.
Hurd, who has cut staff and lowered costs in other HP divisions, has a good track record of improving profit margins, said the report, quoting industry analysts.
Hurd said last week that more than 500 HP and EDS staffers were working full time on efforts to integrate the two companies. He previously announced that EDS chief executive Ron Rittenmeyer would continue to run EDS as a Texas-based division of HP, reporting to Hurd.
HP, which had more than 104 billion dollars in revenue last year, already employed about 172,000 people before the EDS deal. The two companies combined had more than 38 billion dollars in revenue from IT services, while industry leader IBM had 54.1 billion dollars.
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