HP 'in talks' to buy EDS

HP has announced an interest in buying IT services firm Electronic Data Systems (EDS.)

EDS is among the largest providers of IT outsourcing in the world, and specialises in services for large companies.

HP said in a statement that it is in "advanced talks" over a deal with EDS, but revealed little else on the matter.

"There can be no assurances that an agreement will be reached or that a transaction will be consummated," the company said.

"HP does not intend to comment further until an agreement is reached or discussions are terminated."

The Wall Street Journal and The New York Times cited sources close to the negotiations in reporting that HP would pay $12bn to $13bn to acquire EDS.

If true, the deal would be HP's most expensive acquisition since paying $20bn for Compaq in 2002.

A deal between HP and EDS would also bring together two of the so-called Big Six players in the outsourcing industry, a list which also includes IBM, Accenture, ACS and CSC.

See also:

HP Labs opens doors to academia

Innovation Research Program invites proposals related to current research  09 May 2008

HP pipes YouTube into MediaSmart

Video services integrated into multimedia hardware lineup  08 May 2008

HP claims 'memristor' breakthrough

New element for circuit design could revolutionise computing  01 May 2008

HP warns of infected hardware

ProLiant USB keys come with virus free of charge  10 Apr 2008

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