HP to buy over EDS for about US$13B

Recent rumours about Hewlett-Packard (HP) intention to buy over Electronic Data Systems (EDS) has been confirmed, after they released the official statement this week about their multi-billion dollar M&A plan.

By acquiring this world leader in outsourced IT services, the merged entity will form a giant IT services provider big enough to directly rival with IBM Global Services.

If this deal come to reality, it will also indirectly impact on the recent multi-billion outsourcing plan from SITI operations to EDS announced just about a month ago.

Is HP making a right move this time, and won't repeat the same mistake of recent acquisition of Compaq, which was one of the root cause for Carly Fiorina to be forced to step down, and nearly lead to the breakup of the company? Nevertheless, this move certainly brings uncertainty to all the parties involves, especially to their employees and the IT job market.

Meanwhile, the new IBM building in Cyberjaya, which is opposite the EDS building, is close to completion by now.