Hewlett-Packard Co. announced Tuesday it had reached agreement to purchase technology service company EDS of Plano, Texas, for $13.9 billion.

Industry analysts said the move would put HP in line with rival International Business Machines Corp. in the field of technology consulting.

The move should also double HP's services revenue, which amounted to $16.6 billion in fiscal 2007, the company said in a statement.

EDS Chairman, President and Chief Executive Officer Ronald Rittenmeyer will continue to lead EDS. He will join HP's executive council and report to HP's Chairman and Chief Executive Officer Mark Hurd, the statement said.

The combination of HP and EDS will create a leading force in global IT services, said Hurd.

First and foremost, this is a great transaction for our stockholders, Rittenmeyer said. The collective skills of our employees will drive innovation.

Copyright 2008 by United Press International


Publication date: 13 May 2008   

Source: UPI-1-20080513-15333700-bc-us-eds.xml

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