HP and EDS: merge will urge consolidation in IT-sector
World’s largest personal computers’ manufacturer - American company Hewlett-Packard - will get Electronic Data Systems (EDS) for 13,9 billion dollars. Such information has been represented in the press release of the company.
Experts assure that this transaction will urge consolidation in IT-sector, as after occurrence of the incorporated company small firms become simply noncompetitive, and transactions of merges and acquisitions (mergers and acquisitions, M&A) will become the only opportunity for them to survive in the market.
It is impossible to forget about the decrease in rates of economic growth as many buyers start to cut down their expenses that affects the companies of this sector now not in the best image.
It is necessary to note, that HP has not lost, having agreed on this transaction as the IT-branch is famous for rather stable income and high profit even in terms of economic recession. So, in 2007 the total proceeds of the companies, rendering computer services, have grown on 10,5 % and have made 748 billion dollars. IBM remain the market leader - its share in the market made 7,2 %. EDS’ share makes 3 % of the market and the company takes the second place, and HP occupies the fifth place and possesses 2,2 % of the market share.
