HP confirms $13.9bn EDS buy

HP has confirmed that it will buy outsourcing giant EDS for around $13.9bn, or $25 per share.

The pair have signed off on a deal in which the world's number one PC manufacturer will acquire one of the biggest outsourcing companies in the world.

Rumours of the deal surfaced yesterday, and HP has confirmed that the purchase was unanimously approved by both boards of directors.

EDS will continue to operate under the same brand and with the same management team but will report to the HP board.

"The combination of HP and EDS will create a leading force in global IT services," said HP chairman Mark Hurd.

"Together we will be a stronger business partner, delivering customers the broadest, most competitive portfolio of products and services in the industry.

"This reinforces our commitment to help customers manage and transform their technology to achieve better results."

The deal now has to be approved by government regulators and EDS shareholders.

"First and foremost this is a great transaction for our stockholders, providing tremendous value in the form of a significant premium to our stock price," said EDS president Ronald Rittenmeyer.

"It is also beneficial to our customers, as the combination of our two global companies and the collective skills of our employees will drive innovation and enhance value for them in a wide range of industries."