Hewlett-Packard completes acquisition of Electronic Data Systems

by Editor 8/27/2008 2:28:00 PM
Electronic Data Systems (EDS) now officially belongs to hardware giant Hewlett-Packard. HP made the announcement on Tuesday, saying that its $13.9 billion acquisition of the Texas-based IT services provider is complete.

The deal will allow HP to expand its business operations in the field of technology consulting and outsourcing services.

What HP did not clarify in the statement, however, were the company's plans for automation and the fate of the 140,000 EDS employees.

Mark Hurd, Hewlett-Packard CEO, has said in regard to EDS that he will improve efficiency and cut costs in the company, but neither he nor EDS chief executive Ron Rittenmeyer will provide any details of the plans until they have held a presentation for Wall Street analysts on September 15.

Hurd has a good track record with improving efficiency and profit margins, reducing costs, and integrating established IT firms into the existing structures of HP. The HP CEO was successful at completing the integration of Compaq and has overseen acquisitions of 26 other firms since he became HP’s chief executive in 2005.

Last week, Hurd said that more than 500 HP and EDS employeers were working full time on the merger of the two companies. He had previously confirmed that EDS chief executive Ron Rittenmeyer would stay at the helm of EDS as a division of HP, and report directly to him.

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