ANTenna Blog -- Business & E-Business

One day after confirming they were in talks, Hewlett-Packard is, in fact, acquiring EDS.

The $13.9 billion deal pairs one of the world's leading computer makers with a computer consultant giant, and could give IBM a run for its global services money. EDS will become a business group within HP, maintain its headquarters in Plano, Texas, and continue to be led by Ronald A. Rittenmeyer, who will report to HP leader Mark Hurd. HP expects the EDS addition to more than double HP's services revenue of $16.6 billion in fiscal 2007.

According to ChannelWeb, the acquisition makes sense in light of HP's strategy to move more of its midmarket business into VARs' hands, enabling it to bolster its enterprise services business.

The acquisition, unanimously approved by HP's and EDS' boards, is expected to close in the second half of the year.