What are the basics of the deal?
HP will purchase EDS at a price of US$25 per share, or an enterprise value of approximately US$13.9 billion. HP expects the deal to close in the second half of this calendar year, and the company reports the terms of the transaction have been unanimously approved by both HP and EDS’ boards of directors. HP intends to establish a new business group to be branded EDS and located at EDS’ Texas headquarters. After the deal closes, EDS will continue to be led by EDS Chairman, President and CEO Ronald Rittenmeyer, who will report to HP CEO Mark Hurd.
