In 2008, HP (now part of the newly split-off HPE) bought Electronic Data Systems (EDS) for $13.9 billion, a massive amount for what at the time was one of the biggest IT services players in the market space, behind IBM. This was whilst HP’s services division languished in fifth place, behind both Accenture and Fujitsu.
At the time of the deal, it was said that it was too big a merger: a little bit like a whitebait eating a whale. The power of the deal was obvious. HP as an IT services player was catapulted to second place in revenue. It was generally thought to be a good deal, as the majority of the heavy lifting to transform EDS had already been done by the management team led by Michael Jordan.