EDS to Buy Germany's Systematics

Electronic Data Systems (EDS Quote), a computer services company, said it will buy German counterpart Systematics in a stock-and-cash deal worth $570 million.

EDS said in a statement it will pay about $430 million in cash and issue about $140 million in EDS shares to acquire all outstanding Systematics shares. Holders of 70% of Systematics' outstanding shares have already agreed to sell their shares for $395 million, or $27 a share, EDS said. EDS will launch an all-cash tender offer to acquire the remaining publicly held shares for $175 million, or $31 a share.

The deal is expected to close around the middle of the year. EDS said the acquisition is expected to be neutral to its 2001 earnings to add to earnings in 2002.

EDS has been on a merger kick of late, agreeing to pay $670 million for Sabre Holdings' (TSG Quote) airline data centers and other technology assets.