EDS Plans Largest European Acquisition

Electronic Data Systems Corp. announced April 2 plans to purchase Systematics AG of Hamburg, Germany, a move that will double the company's presence in Germany.

The $570 million deal, EDS' largest European acquisition, is expected to close by mid-year, said officials with the Plano, Texas, company. The purchase will deepen EDS' penetration in European markets such as finance, government, insurance and telecommunications.

"This acquisition underscores our focus on Europe in general and Germany in particular," EDS Chairman and Chief Executive Officer Dick Brown said. "EDS will be better able to bring comprehensive, targeted industry service offerings to Europe by combining Systematics' local industry knowledge and systems integration expertise with our significant strategic infrastructure outsourcing business."

Systematics has expertise in customer relationship management, enterprise resource planning, digital value chain and systems integration. The company reported revenues of $570 million in 2000.

Under terms of the agreement, EDS will pay approximately $430 million in cash and issue $140 million in EDS shares to acquire all outstanding Systematics shares.

EDS isn't alone in across-the-Atlantic dealmaking. Lockheed Martin Corp., Bethesda, Md., announced plans to sell its Comsat Mobile Communications operations to Telenor, of Oslo, Norway, in a $116.5 million cash deal. Comsat Mobile has about $100 million in annual revenue and provides global satellite communications.

Telenor is a provider of telecommunications, data and media communication services. The company had about $4.2 billion in sales in 2000.

The deal with Lockheed Martin is expected to close in the next several months, following regulatory approvals.


About the Author

Nick Wakeman is the editor-in-chief of Washington Technology. Follow him on Twitter: @nick_wakeman.

Reader Comments

Please post your comments here. Comments are moderated, so they may not appear immediately after submitting. We will not post comments that we consider abusive or off-topic.

Please type the letters/numbers you see above

What is your e-mail address?

My e-mail address is:

Do you have a password?

Forgot your password? Click here
close

Trending

  • Dive into our Contract Award database

    In an exclusive for WT Insider members, we are collecting all of the contract awards we cover into a database that you can sort by contractor, agency, value and other parameters. You can also download it into a spreadsheet. Our databases track awards back to 2013. Read More

  • Navigating the trends and issues of 2016 Nick Wakeman

    In our latest WT Insider Report, we pull together our best advice, insights and reporting on the trends and issues that will shape the market in 2016 and beyond. Read More

contracts DB

Washington Technology Daily

Sign up for our newsletter.

Terms and Privacy Policy consent

I agree to this site's Privacy Policy.