HP pays $226m for EDS NZ

The New Zealand arm of information technology services giant EDS will be sold to Hewlett- Packard for $225.6 million, as part of HP's US$13.9 billion global takeover of the company.

EDS New Zealand's sale price was disclosed by the Overseas Investment Office, which rubber- stamped the deal.

The combined company will employ 2900 staff and HP New Zealand corporate marketing manager Jeff Healey says it is too early to comment on the possibility of redundancies.

HP New Zealand's outsourcing services arm and parts of its consulting and systems integration business will transfer to EDS, which will be rebranded "EDS – an HP company", but HP's Technology Services Group will remain.

"We look forward to the two business units working closely together to provide seamless solutions for our customers," Mr Healey says.

A managing director and head office for the merged business has yet to be announced.

Also undecided is where HP's 100-strong international development centre in Christchurch will sit within the merged company.

Analyst Ovum says HP faces a "laundry list" of integration issues that are "financial, organisational, operational and cultural".

But senior figures in the New Zealand IT industry have speculated the merger could breathe fresh life into EDS.

A large number of consulting staff are understood to have left HP New Zealand in recent months.

HP says a team of 500 are planning for the global merger and more information will be made available next week to analysts in the United States on the company's future structure.

- © Fairfax NZ News