HP Challenges IBM With EDS Acquisition

(NewsVisual, powered by IntellectSpace) -- A $13.25 billion deal to acquire Electronic Data System Corp (NYSE: EDS) has become Hewlett-Packard’s (NYSE: HPQ) latest move to challenge rival International Business Machines Corp (NYSE: IBM) for computer-maker supremacy.

HP CEO Mark Hurd announced the deal on Tuesday, which has already been approved by EDS and only awaits the company’s shareholder approval. The successful completion of the deal would serve to strengthen HP’s technology services sector and further close the performance gap between it and IBM (see article from The Wall Street Journal).

An IntellectSpace Knowledge Map illustrates how corporate connections between the heads of HP and EDS may have worked to facilitate smooth negotiations during the deal-making process.

A map of the ties shared by Mark Hurd and EDS CEO Ronald A Rittenmeyer reveals multiple avenues for communication that the two may have followed in planning the acquisition. Many past and current EDS executives are shown to have held senior leadership positions at companies like AT&T, HP, and NCR Corp, where Hurd has served as a top executive over his career. It is likely that Hurd was able to take advantage of his ties to Rittenmeyer in order to spark interest in a takeover.

Many of the other past and current Executives and Directors at HP and EDS share similar corporate relationships that may have further strengthened the deal. Given this latest news, we may soon hear of a comparable move on the part of IBM in order to maintain its edge over rival HP.

Click here for the full and interactive version of this IntellectSpace Knowledge Map.

(Note: the information contained and presented in Knowledge Maps is public information from the Securities and Exchange Commission of the United States of America).