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EDS in $570M acquisition
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April 2, 2001: 5:13 a.m. ET
U.S. firm buys German IT services company in cash and shares deal
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LONDON (CNN) - Electronic Data Systems of the U.S. said on Monday it plans to buy German rival Systematics for about $570 million in cash and shares.
EDS, which was founded by Texas billionaire Ross Perot, said it will pay about $430 million in cash and issue $140 million in EDS shares to acquire Hamburg-based Systematics.
EDS, which expects the acquisition to close around mid-year and to have no affect on 2001 earnings, said the deal boosts its global reach and doubles its presence in Germany, Europe's largest IT services market.
"EDS and Systematics have complementary strengths and client profiles," said John Meyer, president of EDS Information Solutions for Europe, the Middle East and Africa. "This acquisition will enable EDS to accelerate growth in Germany and throughout Europe," and will add 2,700 experienced staff to its operations.
The U.S. company said it has entered into agreements with certain shareholders of Systematics to acquire approximately 70 percent of the outstanding shares for $395 million at $27 ( 30) per share.
By April 9, EDS intends to launch an all-cash tender offer for the remaining publicly held shares for $175 million, or $31 per share, the statement added.
The deal follows an agreement on March 15 by EDS to pay $670 million for data centres and other technology assets from Sabre (TSG: Research, Estimates) Holdings Corp.
EDS (EDS: Research, Estimates)shares closed up 2.87 percent In New York on Friday at 55.86.
Systematics shares rose 5.7 percent to 33.20 in morning trading in Frankfurt. 
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