FAQ about HP’s acquisition of EDS

General/Deal Rationale

1. What is HP announcing today?

HP has successfully completed its acquisition of EDS. EDS is now a wholly owned subsidiary of HP known as “EDS, an HP company” and the process to integrate the two companies is under way.

2. How does the acquisition fit into HP’s broader strategy?

This acquisition advances HP’s strategic objective of strengthening its services business, making us the #2 IT services company measured by revenue. The acquisition will expand important services offerings for HP such as IT outsourcing, application outsourcing and business process outsourcing and will further extend HP’s reach into key vertical industries.

Pricing and Deal Structure

3. What is the dollar value of the acquisition?

Per our signed agreement of May 13, HP has acquired EDS for $25.00 per share in cash, for an enterprise value of $13.9 billion.

4. When should EDS stockholders expect to receive payment for their shares?

If you are a registered holder, you should be receiving a package of materials from BNY Mellon Shareowner Services within a week or two with further instructions on exchanging your stock certificates. Payment for your certificated shares should be sent within a few business days after receipt of your documents by BNY Mellon, assuming all of the documents you submit to BNY Mellon are in proper order. Do not send your stock certificates to EDS or to HP. All other holders should contact your broker.

5. What do I need to do in order to receive the cash payment?

If you are a registered holder, you will need to submit your stock certificates along with a Transmittal Letter to BNY Mellon Shareowner Services. You should be receiving a communication from BNY Mellon shortly with additional details. Do not send your stock certificates to EDS or to HP. All other holders should contact your broker.

6. Where can EDS stockholders get more information?

If you are a registered holder, questions and requests for assistance in connection with payment of there merger consideration should be directed to BNY Mellon Shareowner Services at 1-800-250-5016 from the US, Canada or Puerto Rico or 201-680-6579 outside that region. All other holders should contact your broker.

Benefits for Customers and Partners

7. How will customers benefit from this transaction?

The combination of HP and EDS brings clients a trusted, global ally with the scale and scope to manage their most critical business technology needs. We offer:

  • One of the industry’s broadest portfolios of hardware and software products and services including specialization in Application Outsourcing Services, IT Infrastructure, Business Process Outsourcing, Consulting and Integration, and Technology Services
  • Innovations supported by significant R&D investment, including access to HP's $3.6 billion annual research budget and operational best practices
  • Market leadership across a wide array of industries, including Government; Healthcare; Manufacturing; Financial Services; Energy; Transportation; Communications, Media & Entertainment; and Consumer Industries and Retail
  • A commitment to partnerships and an impressive array of partners
  • A respected brand built through responsible leadership by industry pioneers
  • A strengthened financial foundation for EDS, an HP company, that should facilitate long-term client relationships
8. What is the value to partners?

The HP-EDS acquisition provides an opportunity to increase the depth and breadth of our relationships with our partners and enable more integrated solutions for clients. Specifically, partners will:

  • Benefit from the increased global scale for outsourcing service delivery and increased partner investments
  • Continue to be able to grow their business with HP. HP will continue to respect clients’ preferences. We will work with Systems Integrators and Outsourcers to develop joint solutions and ensure clients receive the best combination of products/services to solve their business issues.
  • Have the increased confidence of working with HP and EDS, resulting from two world-class brands and innovative offerings supported by significant R&D investments and resources

Organizational Questions

9. How many employees does EDS have? HP Services? HP?

EDS had approximately 140,000 employees as of 12/31/2007. HP had approximately 172,000 total employees as of 10/31/2007, including more than 70,000 services employees.

10. What executives will lead this new business group?

Ron Rittenmeyer will lead EDS, an HP company, reporting to Mark Hurd. His direct reports will include:

  • Michael Coomer, 55, senior vice president, Asia Pacific & Japan Region, who held a similar role at EDS.
  • Joe Eazor, 46, senior vice president, Transformation. He was previously responsible at EDS for corporate strategy and business development.
  • Bobby Grisham, 54, senior vice president, Global Sales, who held a similar role at EDS.
  • Jeff Kelly, 52, senior vice president, Americas, who held a similar role at EDS.
  • Mike Koehler, 41, senior vice president, Information Technology Outsourcing (ITO) & Business Process Outsourcing, who held a similar role at EDS.
  • Andy Mattes, 47, senior vice president, Applications Services. He was previously senior vice president, HP Outsourcing Services.
  • Maureen McCaffrey, 45, vice president, Worldwide Marketing, who held a similar role at EDS.
  • Dennis Stolkey, 60, senior vice president, U.S. Government, who held a similar role at EDS.
  • Bill Thomas, 48, senior vice president, Europe, Middle East & Africa, who held a similar role at EDS.
11. What is Ann Livermore's role in the new organization?

Ann’s position is unchanged. She continues to lead TSG and reports directly to Mark Hurd.

12. How long will it take to fully integrate the companies?

With the scale and global nature of this transaction, operational integration will occur over time and be accomplished systematically, with timelines and road maps established to avoid abrupt discontinuations of products and services or changes in work locations, processes and tools.