HP-EDS: A Deal That Has Paid Off... So Far

Robert Salomon submits: I have written much about the perils and pitfalls of acquisitions (see Why M&A Deals Go Bad, Acquisitions: A Great Shareholder Ripoff?, or DaimlerChrysler Post Mortem). So in the interest of fairness I thought I would share a story of a deal that seems to have provided value to the acquirer. In an article that appeared in today’s New York Times, Ashlee Vance details how HP (HPQ) was able to derive value from its acquisition of EDS (EDS) (see HP’s Bet Seems a Winner). Consistent with what I’ve mentioned in previous posts, it is in the integration phase where deals are either won or lost, …and HP seems to have been able to generate both cost saving and revenue enhancement synergies through this deal.Complete Story »