EDS Gets Kraft IT Pact

The companies ink a $1.7 billion deal.
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Electronic Data Systems

(EDS)

inked a seven-year, $1.7 billion IT-services contract with

Kraft Foods

(KFT)

, EDS said Friday.

Shares of EDS were recently trading up 2 cents to $27.29.

EDS will take over Kraft's IT infrastructure and manage both desktops and servers for more than 60,000 companies all over the world. It's the largest deal in the consumer and retail sector that EDS has signed so far.

EDS also will provide IT services including data centers, hosting and telecommunications for the food-service giant.

Dell

(DELL) - Get Report

,

Microsoft

(MSFT) - Get Report

,

Cisco Systems

(CSCO) - Get Report

and

EMC

(EMC)

are partnering with EDS on the deal and will provide hardware and software to Kraft.

About 670 Kraft workers will join EDS as a result of the agreement.

EDS reports its first-quarter earnings on Tuesday.