HP to Acquire EDS for $13.9 Billion

[Supermick]

PALO ALTO, Calif., and PLANO, Texas, May 13, 2008 – HP and EDS today announced that they have signed a definitive agreement under which HP will purchase EDS at a price of $25.00 per share, or an enterprise value of approximately $13.9 billion. The terms of the transaction have been unanimously approved by the HP and EDS boards of directors.

The transaction is expected to close in the second half of calendar year 2008 and to more than double HP's services revenue, which amounted to $16.6 billion in fiscal 2007. The companies' collective services businesses, as of the end of each company's 2007 fiscal year, had annual revenues of more than $38 billion and 210,000 employees, doing business in more than 80 countries.

http://www.eds.com/news/releases/4550/

[e-brake]

Great, all mergers are followed by layoffs. So much for the largest stable employer of IT professionals in the DFW area. I bet at least 1/2 of the local IT jobs will be in India by this time next year.

[Sexual Chocolate]

It will be worth a damn again (since Dick Brown made his money and ran back in 2001) hopefully.

It'll all be outsourced for IT services, but the value will go back to the $48 + range that it once held.

/shrug

[Supermick]

Originally Posted by e-brake

Great, all mergers are followed by layoffs. So much for the largest stable employer of IT professionals in the DFW area. I bet at least 1/2 of the local IT jobs will be in India by this time next year.

That's what the DMN is saying. There will be big layoffs at EDS and alot of outsourcing to India, which is what HP has been doing for the last few years as a cost measure.

[Cock Puncher]

Originally Posted by e-brake

So much for the largest stable employer of IT professionals in the DFW area..

HA, they haven't been stable since the IT industry took a dump in '01

[Cock Puncher]

Originally Posted by Supermick

PALO ALTO, Calif., and PLANO, Texas, May 13, 2008 – HP and EDS today announced that they have signed a definitive agreement under which HP will purchase EDS at a price of $25.00 per share, or an enterprise value of approximately $13.9 billion. The terms of the transaction have been unanimously approved by the HP and EDS boards of directors.

The transaction is expected to close in the second half of calendar year 2008 and to more than double HP's services revenue, which amounted to $16.6 billion in fiscal 2007. The companies' collective services businesses, as of the end of each company's 2007 fiscal year, had annual revenues of more than $38 billion and 210,000 employees, doing business in more than 80 countries.

http://www.eds.com/news/releases/4550/

they are over paying

[Damnsammit]

That sucks.... my dad works for EDS

[Cock Puncher]

Originally Posted by Damnsammit

That sucks.... my dad works for EDS

So does my brother

[Damnsammit]

But they've been telling him they were laying his whole department off for about 5 years now, so he is gonna be ready for it again...

[Cock Puncher]

Originally Posted by Damnsammit

But they've been telling him they were laying his whole department off for about 5 years now, so he is gonna be ready for it again...

Tell him to check out PerotSystems. They love x-EDS folk over here

HAlf my brother's team is alreay working here and I think he has a couple pf interviews set up too

[A-Dub]

This is a huge deal in the consulting and BPO world. Accenture, where I work, I'm sure is shitting the bed on this one.

[St. Stalin the Apathetic]

Originally Posted by Sexual Chocolate

It will be worth a damn again (since Dick Brown made his money and ran back in 2001) hopefully.

that was borderline criminal... seriously

[Sexual Chocolate]

Originally Posted by xian

that was borderline criminal... seriously

I remember him arriving with a stupid bonus and then making MORE bonus money before splitting camp. He was a straight up hatchet man and was brought in to get the stock to a certain price (which he did through leveraging accounts and cutting people).

Once he met it, he got his cash and gave less of a damn than anyone could.

The only person to almost do as well at the money dance was Les Alberthal.

[Sir Meh]

lol at EDS being stable. They layoff people every few years and work their employees like mules. They would have to give me a massive ass raise to ever work for them.

Also, this could be excellent for smaller local companies. I lol'd when I read this news.

[Deff Gordon]

actually... the layoffs generally come before the merger is agreed upon. they do that to make the company look more attractive on paper. at least that is how it has been lately with a lot of these corporate agendas.