Hewlett-Packard Buying EDS for $13.9B

In December, Hurd told analysts at a briefing that the company's revenue forecast anticipated some small acquisitions this year, but didn't include any major deals.

EDS, which is based in Plano, Texas, provides technology outsourcing services to various organizations and had revenue of $22.1 billion in fiscal 2007.

According to IDC's Welch, EDS has developed successful practices around specific industries, such as transportation and aviation, handling key operations such as ticket reservations and maintenance scheduling.

The so-called business process outsourcing is the fastest-growing segment of the technology services industry, says Welch. And it fits nicely into H-P's services group, which is more heavily weighed towards the slow-growing technology support business.

H-P services had sales of $16.6 billion in fiscal 2007, according to H-P.