Electronic Data Systems (EDS), headquartered in Plano, Texas, was established in 1962 by H. Ross Perot. General Motors acquired the company in 1984, spun it off again as an independent company in 1996, and became an EDS client.
On May 13, 2008, Hewlett-Packard Co. confirmed that it had reached a deal with Electronic Data Systems to acquire the company for $13.9 billion.
The deal was completed on August 26, 2008. EDS became an HP business unit and was renamed "EDS, an HP company". Ronald A. Rittenmeyer, EDS Chairman, President, and CEO, remained at the helm and reported to HP CEO Mark Hurd until his retirement.
As of 2008, EDS employed 139,000 people in 64 countries, the largest locations being the United States, India and the UK. It was ranked as one of the largest service companies on the Fortune 500 list with around 2,000 clients.
As of 23 September 2009, EDS began going to market as HP Enterprise Services, a name change which came one year after HP announced the acquisition of EDS and was a critical milestone as the integration of EDS into HP neared completion.
In June 1996, the company was spun off from GM and became an independent company once again, triggering two years of restructuring, including related costs. The company struggled with a string of disappointing quarterly performances for a time, and the stock dropped to nearly half of what it had been trading at a year previously before bouncing back. In addition to a division pursuing multinational banking contracts, headed by Stephen R. Bova, the reorganization also spawned three other divisions--community banking, U.S. banking, and global securities services, headed by Louis Ivey, Michael Littell, and Michael T. Reddy, respectively. The company continued to do business with GM, after renegotiating their contracts, and ended up with $4.31 billion and $4.17 billion worth of business in 1997 and 1998, respectively, from the auto giant, in a ten-year $40 million agreement under which EDS would continue to be GM's principal provider of information technology (IT) services.
Early in the year, Rolls-Royce, one of the world's leading providers of aircraft and helicopter engines, engaged EDS and its management consulting firm, Kearney, and charged them with three goals: improve customer service, increase quality, and achieve significant business improvements. EDS created a "CoSourcing' relationship and improved many of Rolls-Royce's core business processes, including external purchasing, project management, product development and manufacturing, and information-handling and support systems. Rolls-Royce's U.S.-based subsidiary, The Allison Engine Company, later joined the agreement to improve global business process integration. Later that year, the relationship with EDS/Kearney was extended to Rolls-Royce's industrial power businesses, which provided systems in the naval power, oil and gas, electricity generation, transmission and distribution, and materials-handling market sectors encompassing Rolls-Royce's manufacturing capacity and support functions in Canada, Europe, Africa, and the Pacific Rim. Integration Management ranked the alliance as one of "Ten Deals That Shook the Globe' and praised both Rolls-Royce and EDS for a nontraditional approach in making the relationship work.
Also in 1996, the company began moving away from pursuing huge regional contracts in favor of smaller, more profitable ones with community banks (although in June the company signed a $250 million contract to manage desktop computer systems for Citigroup). As a result, in one larger deal EDS lost out in May to competitor Computer Sciences Corp. for part of a $2 billion, seven-year outsourcing contract with J.P. Morgan & Co., but signed 147 outsourcing contracts for a total value of $8.4 billion, including a ten-year, $75 million technology outsourcing agreement with Credito Emiliano, a private bank in Italy with 180 branches and 2,000 employees, EDS's first such contract with an Italian bank. Total revenue for the year reached $14.44 billion, but the company's profits declined for the first time since 1976, with a net income of $431.5 million, which included $895 million of restructuring charges, asset write-downs, and other related charges, as well as $45.5 million of one-time split-off costs, all before income taxes. On the up side that year, the company's stock began trading on the London Stock Exchange, and EDS became the first company to earn more than £1 billion in the U.K. computer services and software market.
By 1997 over 70 percent of the automated teller machines (ATMs) in the United States were manufactured by the company, making EDS the nation's leading designer and supplier of such. That year the company signed a record level of new business valued at more than $16.3 billion, including two megadeals worth a combined $5.9 billion--one with The Commonwealth Bank of Australia Ltd.; the other with BellSouth in Atlanta, Georgia. Kearney's gross fees surpassed $1 billion for the first time, and new clients included market leaders such as British Airways, Chevron, and Mobil.
In June, the company merged its banking and securities unit with the credit services division, and the following month acquired all remaining outstanding equity interests in Neodata Corporation, a Colorado-based integrated marketing communications services company, for $61.7 million. The company's total revenue kept climbing, to $15.24 billion, with a net income of $730.6 million, outstripping the combined total revenue of its closest three competitors, Computer Sciences ($5.24 billion), First Data ($4.94 billion), and Vanstar ($2.01 billion).
Early in 1998, the company began working with Italy's Ministry of Education to help update their information technology infrastructure and help decentralize power and responsibilities from central government to peripheral offices. EDS allied with Ferrovie dello Stato (FS), the Italian State Railways, combining EDS's information technology expertise with FS's logistics know-how and existing infrastructure covering all of Italy. A distributed client/server system with 30,000 computers to link 14,000 institutions, from primary through high schools, with the Ministry's regional education offices throughout Italy, was designed.
In December 1998, Richard H. "Dick' Brown, former CEO of Vienna, Virginia-based Cable & Wireless, became the company's third CEO, replacing outgoing Alberthal, who also stepped down as chairman. During Alberthal's tenure, net sales grew from $4 billion to $16.9 billion, with a 1998 net income of $743.4 million. Also at the end of December, Vice-Chairman Gary Fernandes, a veteran EDS executive, retired, leaving industry analysts concerned about turnovers at the top of the company.
In January 1999, the company announced a joint venture with NCR Corporation, part of EDS's newly unveiled Business Intelligence Services (BIS) group. The arrangement would couple EDS's industry knowledge and consulting expertise with NCR's data warehousing capabilities. Together, EDS and NCR would help companies open up data warehouses linking employees, vendors, and business partners, a roughly $100 billion market. Such deals, coupled with a continuing emphasis on employee training and customer service, virtually guaranteed EDS's prominence within the information technology industry.
Principal Subsidiaries: A.T. Kearney Inc.; Bancsystems Association Inc.; Cummins Cash and Information Services Inc.; EDS Australia (65%); EDS Personal Communications Corp.; EDS Unigraphics; Energy Management Associates; Neodata Corp.; Scicon.
Principal Divisions: Credit Union Services; Health Care; Information Systems; Maintenance Systems Integration; Military Systems; Technical Products; People Systems.
In 2006, EDS sold their management consulting Subsidiary company, A.T. Kearney, in a management buyout and retained interests in five[citation needed] related companies:
ExcellerateHRO, which offers Human resources outsourcing services jointly owned by Towers Perrin
Injazat Data Systems, which is a joint venture between EDS and Mubadala Development Company of Abu Dhabi. Its purpose is to provide IT and business process outsourcing (BPO) services in the United Arab Emirates, Qatar and Oman to the government, oil and gas, utilities, financial services, transportation, telecom and healthcare sectors
SOLCORP, which provides software solutions and consulting services for the life insurance and wealth management industry
EDS Consumer Loan Services (a.k.a. Wendover), which supports consumer loans in the United States
MphasiS, an HP Company, operating from Bangalore, India, is a leading applications development and business processing and infrastructure outsourcing company. MphasiS was merged with then EDS India Unit to become MphasiS, an HP Company with a total strength of 33000+ employees. MphasiS operates as an independent HP subsidiary with its own board and continues to be listed on Indian markets as MphasiS Limited.
Statistics:
Public Company
Incorporated: 1962
Employees: 110,000
Sales: $16.9 billion (1998)
Stock Exchanges: New York London
Ticker Symbol: EDS
NAIC: 51421 Data Processing Services; 541512 Computer Systems Design Services; 541513 Computer Facilities Management Services; 51121 Software Publishers
Address:
5400 Legacy Drive
Plano, Texas 75024-3199
U.S.A.
On May 13, 2008, Hewlett-Packard Co. confirmed that it had reached a deal with Electronic Data Systems to acquire the company for $13.9 billion.
The deal was completed on August 26, 2008. EDS became an HP business unit and was renamed "EDS, an HP company". Ronald A. Rittenmeyer, EDS Chairman, President, and CEO, remained at the helm and reported to HP CEO Mark Hurd until his retirement.
As of 2008, EDS employed 139,000 people in 64 countries, the largest locations being the United States, India and the UK. It was ranked as one of the largest service companies on the Fortune 500 list with around 2,000 clients.
As of 23 September 2009, EDS began going to market as HP Enterprise Services, a name change which came one year after HP announced the acquisition of EDS and was a critical milestone as the integration of EDS into HP neared completion.
In June 1996, the company was spun off from GM and became an independent company once again, triggering two years of restructuring, including related costs. The company struggled with a string of disappointing quarterly performances for a time, and the stock dropped to nearly half of what it had been trading at a year previously before bouncing back. In addition to a division pursuing multinational banking contracts, headed by Stephen R. Bova, the reorganization also spawned three other divisions--community banking, U.S. banking, and global securities services, headed by Louis Ivey, Michael Littell, and Michael T. Reddy, respectively. The company continued to do business with GM, after renegotiating their contracts, and ended up with $4.31 billion and $4.17 billion worth of business in 1997 and 1998, respectively, from the auto giant, in a ten-year $40 million agreement under which EDS would continue to be GM's principal provider of information technology (IT) services.
Early in the year, Rolls-Royce, one of the world's leading providers of aircraft and helicopter engines, engaged EDS and its management consulting firm, Kearney, and charged them with three goals: improve customer service, increase quality, and achieve significant business improvements. EDS created a "CoSourcing' relationship and improved many of Rolls-Royce's core business processes, including external purchasing, project management, product development and manufacturing, and information-handling and support systems. Rolls-Royce's U.S.-based subsidiary, The Allison Engine Company, later joined the agreement to improve global business process integration. Later that year, the relationship with EDS/Kearney was extended to Rolls-Royce's industrial power businesses, which provided systems in the naval power, oil and gas, electricity generation, transmission and distribution, and materials-handling market sectors encompassing Rolls-Royce's manufacturing capacity and support functions in Canada, Europe, Africa, and the Pacific Rim. Integration Management ranked the alliance as one of "Ten Deals That Shook the Globe' and praised both Rolls-Royce and EDS for a nontraditional approach in making the relationship work.
Also in 1996, the company began moving away from pursuing huge regional contracts in favor of smaller, more profitable ones with community banks (although in June the company signed a $250 million contract to manage desktop computer systems for Citigroup). As a result, in one larger deal EDS lost out in May to competitor Computer Sciences Corp. for part of a $2 billion, seven-year outsourcing contract with J.P. Morgan & Co., but signed 147 outsourcing contracts for a total value of $8.4 billion, including a ten-year, $75 million technology outsourcing agreement with Credito Emiliano, a private bank in Italy with 180 branches and 2,000 employees, EDS's first such contract with an Italian bank. Total revenue for the year reached $14.44 billion, but the company's profits declined for the first time since 1976, with a net income of $431.5 million, which included $895 million of restructuring charges, asset write-downs, and other related charges, as well as $45.5 million of one-time split-off costs, all before income taxes. On the up side that year, the company's stock began trading on the London Stock Exchange, and EDS became the first company to earn more than £1 billion in the U.K. computer services and software market.
By 1997 over 70 percent of the automated teller machines (ATMs) in the United States were manufactured by the company, making EDS the nation's leading designer and supplier of such. That year the company signed a record level of new business valued at more than $16.3 billion, including two megadeals worth a combined $5.9 billion--one with The Commonwealth Bank of Australia Ltd.; the other with BellSouth in Atlanta, Georgia. Kearney's gross fees surpassed $1 billion for the first time, and new clients included market leaders such as British Airways, Chevron, and Mobil.
In June, the company merged its banking and securities unit with the credit services division, and the following month acquired all remaining outstanding equity interests in Neodata Corporation, a Colorado-based integrated marketing communications services company, for $61.7 million. The company's total revenue kept climbing, to $15.24 billion, with a net income of $730.6 million, outstripping the combined total revenue of its closest three competitors, Computer Sciences ($5.24 billion), First Data ($4.94 billion), and Vanstar ($2.01 billion).
Early in 1998, the company began working with Italy's Ministry of Education to help update their information technology infrastructure and help decentralize power and responsibilities from central government to peripheral offices. EDS allied with Ferrovie dello Stato (FS), the Italian State Railways, combining EDS's information technology expertise with FS's logistics know-how and existing infrastructure covering all of Italy. A distributed client/server system with 30,000 computers to link 14,000 institutions, from primary through high schools, with the Ministry's regional education offices throughout Italy, was designed.
In December 1998, Richard H. "Dick' Brown, former CEO of Vienna, Virginia-based Cable & Wireless, became the company's third CEO, replacing outgoing Alberthal, who also stepped down as chairman. During Alberthal's tenure, net sales grew from $4 billion to $16.9 billion, with a 1998 net income of $743.4 million. Also at the end of December, Vice-Chairman Gary Fernandes, a veteran EDS executive, retired, leaving industry analysts concerned about turnovers at the top of the company.
In January 1999, the company announced a joint venture with NCR Corporation, part of EDS's newly unveiled Business Intelligence Services (BIS) group. The arrangement would couple EDS's industry knowledge and consulting expertise with NCR's data warehousing capabilities. Together, EDS and NCR would help companies open up data warehouses linking employees, vendors, and business partners, a roughly $100 billion market. Such deals, coupled with a continuing emphasis on employee training and customer service, virtually guaranteed EDS's prominence within the information technology industry.
Principal Subsidiaries: A.T. Kearney Inc.; Bancsystems Association Inc.; Cummins Cash and Information Services Inc.; EDS Australia (65%); EDS Personal Communications Corp.; EDS Unigraphics; Energy Management Associates; Neodata Corp.; Scicon.
Principal Divisions: Credit Union Services; Health Care; Information Systems; Maintenance Systems Integration; Military Systems; Technical Products; People Systems.
In 2006, EDS sold their management consulting Subsidiary company, A.T. Kearney, in a management buyout and retained interests in five[citation needed] related companies:
ExcellerateHRO, which offers Human resources outsourcing services jointly owned by Towers Perrin
Injazat Data Systems, which is a joint venture between EDS and Mubadala Development Company of Abu Dhabi. Its purpose is to provide IT and business process outsourcing (BPO) services in the United Arab Emirates, Qatar and Oman to the government, oil and gas, utilities, financial services, transportation, telecom and healthcare sectors
SOLCORP, which provides software solutions and consulting services for the life insurance and wealth management industry
EDS Consumer Loan Services (a.k.a. Wendover), which supports consumer loans in the United States
MphasiS, an HP Company, operating from Bangalore, India, is a leading applications development and business processing and infrastructure outsourcing company. MphasiS was merged with then EDS India Unit to become MphasiS, an HP Company with a total strength of 33000+ employees. MphasiS operates as an independent HP subsidiary with its own board and continues to be listed on Indian markets as MphasiS Limited.
Statistics:
Public Company
Incorporated: 1962
Employees: 110,000
Sales: $16.9 billion (1998)
Stock Exchanges: New York London
Ticker Symbol: EDS
NAIC: 51421 Data Processing Services; 541512 Computer Systems Design Services; 541513 Computer Facilities Management Services; 51121 Software Publishers
Address:
5400 Legacy Drive
Plano, Texas 75024-3199
U.S.A.