The European Commission today approved the acquisition of Electronic Data Systems (News - Alert) Corporation by HP.

 

HP and EDS signed a definitive agreement on May 13. Under the agreement, HP will purchase EDS (News - Alert) at a price of $25 per share, or an enterprise value of $13.9 billion. The portfolio of HP spans printing, personal computing, software, services and IT infrastructure. This IT company said it strives to simplify technology experiences for all its customers ranging from individual consumers to the largest businesses.

 

EDS describes itself as a global technology services company that delivers business solutions to its customers. EDS delivers a broad portfolio of information technology and business process outsourcing services to clients in the manufacturing, financial services, healthcare, communications, energy, transportation, consumer and retail industries, according to the company.

 

The waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 expired without a request for additional information by the U.S. Department of Justice or the Federal Trade Commission. Regulatory clearance from other non U.S. jurisdictions and EDS stockholder approval is still required for the transaction. The transaction is still subject to the satisfaction or waiver of other closing conditions specified in the definitive agreement signed by both parties. The stockholders of EDS are scheduled to vote on the transaction July 31.

 

HP, EDS and the plaintiffs in the five stockholder lawsuits that were commenced following the execution of the definitive agreement have agreed to settle and dismiss all pending lawsuits related to the proposed merger.

 

Theagreement will be subject to court approval. As a part of the settlement between HP, EDS and the plaintiffs, it has been confirmed by HP and EDS that the closing of the merger will not occur prior to August 18. The third quarter 2008 dividend of $0.05 per share of EDS will be paid on September 10 to its stockholders. The stockholders eligible for the same will be those on record as of the close of business on August 15. HP and EDS have also entered into an amendment of the definitive agreement to incorporate the terms of the settlement and other terms agreed to by the parties.