HP buys EDS to take on IBM
Hewlett-Packard and EDS, the Plano, TX-based service giant, announced today that HP will purchase the company for "an enterprise value of approximately $13.9 billion." The deal has already been approved of by both companies' boards and should be finalized some time in the second half of this year. For EDS, the acquisition is primarily about improving its languishing stock price. For HP, the deal is about increasing its services business, in particular, adding more types of services and increasing its scale in order to take on the king of IT services, IBM.