HP Buys Electronic Data Systems for Nearly $12.6B

Palo Alto, CA (AHN) - PC maker Hewlett-Packard announced Tuesday it will acquire Electronic Data Systems Corp. for almost $12.6 billion. The news confirms reports Monday that the two companies were involved in "advanced" negotiations.

As part of the deal, EDS investors will receive $25 per share. EDS chairman and CEO Ronald Rittenmeyer will continue to lead the new HP business and the company headquarters will remain in Plano, Texas.

The new EDS tie-up will create a services business with 210,000 and will boost related revenue for HP from $16.6 billion to around $29 billion.