HP has completed its acquisition of Electronic Data Systems Corporation (EDS), initially announced on 13th May 13. The transaction was valued at approximately US$13.9 billion, ensuring HP has one of the technology industry’s broadest portfolios of products, services and end-to-end solutions.
The acquisition is, by value, the largest in the IT services sector and the second largest in the technology industry, following HP’s acquisition of Compaq, which closed in 2002. The companies’ collective services businesses, as of the end of each company’s 2007 fiscal year, had annual revenues of more than US$38 billion and 210,000 employees, operating in more than 80 countries.
“This is a historic day for HP and EDS and for the clients we serve,” said Mark Hurd, HP chairman and chief executive officer. “Independently, each company is a respected industry leader. Together, we are a global leader, with the capability to serve our clients – whatever their size, location or sector – with one of the most comprehensive and competitive portfolios in the industry.”
As a business group, EDS, an HP company, will focus on outsourcing services providers – with the ability to provide complete lifecycle capabilities in health care, government, manufacturing, financial services, energy, transportation, consumer & retail, communications, and media & entertainment.
As previously announced, the group is led by Ron Rittenmeyer, president and chief executive officer, who had served as EDS’ chairman, president and CEO. It remains based in Plano, Texas.
HP’s Technology Solutions Group (TSG) will shift to EDS its outsourcing services operations, as well as portions of its consulting and integration activities. TSG will focus on servers, storage, software and technology services, such as installing, maintaining and designing technology systems for customers, as well as certain consulting and integration services.
Rittenmeyer announced his leadership team for the new business group, representing a mixture of existing EDS direct reports, as well as new appointments from within EDS and HP. His direct reports are:
- Michael Coomer, 55, senior vice president, Asia Pacific & Japan, who held a similar role at EDS.
- Joe Eazor, 46, senior vice president, Transformation. He was previously responsible at EDS for corporate strategy and business development.
- Bobby Grisham, 54, senior vice president, Global Sales, who held a similar role at EDS.
- Jeff Kelly, 52, senior vice president, Americas, who held a similar role at EDS.
- Mike Koehler, 41, senior vice president, Infrastructure Technology Outsourcing (ITO) & Business Process Outsourcing (BPO), who held a similar role at EDS.
- Andy Mattes, 47, senior vice president, Applications Services. He was previously senior vice president, HP Outsourcing Services.
- Maureen McCaffrey, 45, vice president, Worldwide Marketing, who held a similar role at EDS.
- Dennis Stolkey, 60, senior vice president, U.S. Public Sector, who held a similar role at EDS.
- Bill Thomas, 48, senior vice president, Europe, Middle East & Africa, who held a similar role at EDS.