A definitive agreement was reached between HP and EDS today where HP will purchase the global outsourcing company for $13.9 billion ($25 a share).
EDS is a global technology services company centering on information outsourcing. It serves both the private and public sectors, with core areas including manufacturing, financial services, healthcare, communications, energy, transportation, and
over $2.5 billion in 2007 (compare this to HP's $500 million). However, HP investors weren't so sure as HP's stock dropped 5% (closed at $46.83), but this is likely due to the scale of the deal, versus HP's wisdom at entering the services domain. With every acquisition there are the challenges of company cultures and layoffs (yes, it's an ugly word during this economic downturn in the US, but it is a reality), while keeping an eye on the competition. Areas such as software development and sales will