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Technology Deals HP challenges IBM for service supremacy with $13.9 billion EDS buyout
Technology Deals HP challenges IBM for service supremacy with $13.9 billion EDS buyout | HP challenges IBM for service supremacy with $13.9 billion EDS buyout |
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| by Stan Beer | |
| Wednesday, 14 May 2008 | |
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Page 2 of 2 “Ultimately, whether IBM, Accenture, CSC and Capgemini
need fear the outcome of this potential deal would rest on the success
or otherwise of what would undoubtedly be a very ambitious corporate
integration project. On paper an HP-EDS combination looks workable. But
in practice it could prove anything but.”“The combination of HP and EDS will create a leading force in global IT services,” said Mark Hurd, HP’s chairman and chief executive officer. ”Together, we will be a stronger business partner, delivering customers the broadest, most competitive portfolio of products and services in the industry. This reinforces our commitment to help customers manage and transform their technology to achieve better results.” HP plans that EDS will continue to be led after the deal closes by EDS Chairman, President and Chief Executive Officer Ronald A. Rittenmeyer, who will join HP’s executive council and report to Hurd. However, it will be interesting to see how such a senior figure as Rittenmeyer takes to a 2IC role. Rittenmeyer said, “First and foremost, this is a great transaction for our stockholders, providing tremendous value in the form of a significant premium to our stock price. It’s also beneficial to our customers, as the combination of our two global companies and the collective skills of our employees will drive innovation and enhance value for them in a wide range of industries. In addition, our Agility Alliance will be significantly strengthened.”
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