HP Seals the Deal, Buys EDS For $14B

netbuzz writes "Following yesterday's spate of heated rumors, the announcement comes this morning that HP has completed a deal to buy EDS for just under $14 billion. The acquisition has been approved by the boards of both companies, according to HP. EDS CEO Ron Rittenmeyer has issued an e-mail to his employees promising that the company brand will continue and, "We are — and will remain — EDS."

Comments

I hope HP is smarter than GM

[maurert]

As an HP employee I hope HP is smarter than GM was. Remember the GM bought EDS in the 80s and EDS milked GM for all it was worth. EDS did great; GM not so. Of course GM thought it was buying a company to outsource its IT to while HP is looking to merge outsourcing operations with EDS.

So long DELL?

[Quetzo]

Looks like HP is moving into IBM/DELL territory ( managed IT services ). I'm not too worried for IBM.

DELL, on the other hand, has a real fight on its hands. So.. umm... Mike.. why don't you forget about your small business services crap and go back to focus on making good machines and providing good customer service.

I don't know if EDS was the best vehicle to use, but its better than trying to setup something new.

The day after.

[demachina]

"We are -- and will remain -- EDS."

Until the day after the merger, the execs cache out, and the infighting between the remaining managers starts. Executives on the bottom end of the merger always do one of two things:

- Cash out
- Try to outmaneuver the execs on the top end of the merger and take over the whole company, with a lot of bitter intrigue in the process

You have to wonder how current EDS customers who are attached to their non HP hardware and software will feel about this when EDS suddenly has a massive bias to drive every nail with an HP hammer.

Re:Heh...

[AchilleTalon]

Someone can define HP's culture? Compaq's culture? Digital's culture? IBM's culture? And so on? It would be interesting to finally know if they are really so much different.