TAG | Giant HP/EDS merger one step closer: a $13.9 billion story |
|
| by Stephen Withers | |
| Wednesday, 27 August 2008 | |
|
Page 2 of 2 The EDS business group will continue to be led by president and CEO Ron Rittenmeyer. Of the remaining nine members of the group's leadership team, all but one are existing EDS employees. The exception is senior vice president, applications services Andy Mattes, who was previously senior vice president, HP outsourcing services."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." The combined services businesses cover 80 countries and involve 210,000 employees and saw revenue of more than $38 billion in fiscal 2007. Ovum's Madden suggests that head count will soon fall: "it’s clear that HP is anxious to bring EDS’ cost structure into alignment with the greater HP organization – and undoubtedly job cuts will be coming somewhere." The deal has been accepted by shareholders of both companies, and all that remains is to obtain regulatory approval. Will IBM be quaking in its corporate boots? As the other global outsourcer that also has a significant hardware operation, it's the obvious target of the HP-EDS hookup. There's no doubt that the strengthening of a competitor always presents a new challenge, but mergers and acquisitions aren't instant and come with challenges of their own. There may be around 500 people working on the integration of HP and EDS, but the final chapter of the marriage is yet to be written.
Get stories like this delivered daily - FREE - subscribe now
|
Tags
| < Next story in category | Previous story in the category > |
|---|
