Feeds

HP in talks to buy EDS

Hurd's big bite

Build a business case: developing custom apps

Hewlett-Packard's Mark Hurd may be remounting his company's services charge, according to The Wall Street Journal, which says he is close to signing a deal to acquire Electronic Data Systems for $12bn to $13bn.

That would represent as much as a 38 per cent premium over EDS's current market capitalization, at least based on Friday's closing price, and a sign that HP is serious about getting the acquisition completed.

HP confirmed it is in talks with EDS, but said little else. "There can be no assurances that an agreement will be reached or that a transaction will be consummated," a company statement read. "HP does not intend to comment further until an agreement is reached or discussions are terminated."

With HP well into its golden years, the company continues to look for ways to keep revenue growing. It tried to acquire PriceWaterhouse's consulting division in a bid that famously flamed out in 2000 - IBM ended up buying the group two years later. Since then, HP has taken only baby steps in that direction after the company ran into trouble digesting Compaq, and Hurd was brought in to rejigger strategy and the company.

In 2006, HP acquired Mercury Interactive for $4.5bn, and over the weekend, it emerged that the company is poisted to pay £1.5bn to take over datacenters from BT. Last year, HP generated $16.6bn in sales from services, about 16 per cent of its overall $104bn revenue.

The deal would be HP's biggest since buying Compaq for $20bn in 2002. It could be announced as soon as Tuesday, according to unnamed people the WSJ said were familiar with the matter. EDS shares were 28 percent following the report. ®

5 things you didn’t know about cloud backup

More from The Register

next story
Kate Bush: Don't make me HAVE CONTACT with your iPHONE
Can't face sea of wobbling fondle implements. What happened to lighters, eh?
Video of US journalist 'beheading' pulled from social media
Yanked footage featured British-accented attacker and US journo James Foley
Caught red-handed: UK cops, PCSOs, specials behaving badly… on social media
No Mr Fuzz, don't ask a crime victim to be your pal on Facebook
Ballmer leaves Microsoft board to spend more time with his b-balls
From Clippy to Clippers: Hi, I see you're running an NBA team now ...
Online tat bazaar eBay coughs to YET ANOTHER outage
Web-based flea market struck dumb by size and scale of fail
Amazon takes swipe at PayPal, Square with card reader for mobes
Etailer plans to undercut rivals with low transaction fee offer
Assange™: Hey world, I'M STILL HERE, ignore that Snowden guy
Press conference: ME ME ME ME ME ME ME (cont'd pg 94)
Call of Duty daddy considers launching own movie studio
Activision Blizzard might like quality control of a CoD film
US regulators OK sale of IBM's x86 server biz to Lenovo
Now all that remains is for gov't offices to ban the boxes
prev story

Whitepapers

5 things you didn’t know about cloud backup
IT departments are embracing cloud backup, but there’s a lot you need to know before choosing a service provider. Learn all the critical things you need to know.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Build a business case: developing custom apps
Learn how to maximize the value of custom applications by accelerating and simplifying their development.
Rethinking backup and recovery in the modern data center
Combining intelligence, operational analytics, and automation to enable efficient, data-driven IT organizations using the HP ABR approach.
Next gen security for virtualised datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.