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by David R. Brousell, MA Editorial Staff Posted on Tuesday, May 13, 2008 5:26:47 PM Sign Up to receive Daily News Alerts in your E-mail Inbox   | Abstract: | Colossal tech deal combines two services businesses in what observers expect will be a market showdown with services leader IBM. |
| Keywords: | HP EDS, HP buys EDS |
For Electronic Data Systems Corp., it’s back into the arms of a larger corporate parent.
Under the terms of a definitive agreement announced today, Hewlett-Packard Co. will buy the Plano, Texas-based computer services giant for $13.9 billion, 12 years after EDS became independent of General Motors Corp.
The years following its spin-off from GM have been challenging ones for EDS. Heightened competition by such companies as IBM, financial losses, and top executive changes marked the company’s experience in the early years of the new century. A new management team installed in 2003 accomplished a financial turnaround by 2006, but growth beyond single digits has remained elusive.
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