EDS hopes $89m buy will bolster outsourcing

Electronic Data Systems has acquired the Feld Group, a privately held technology consulting company, in an effort to bolster its outsourcing services.

Under the deal, announced on Monday, EDS paid $89m in cash and stock for Feld, which focuses on helping technology companies reorganise and realign their operations.

Mike Jordan, chief executive of EDS, said in a statement: "We see tremendous growth opportunities in the business process outsourcing [and] business transformation services market, and the addition of the Feld Group will greatly enhance our offerings and expertise in the field."

EDS has undergone a number of difficulties this year, including the resignation of former CEO Dick Brown in March, followed by a string of executive departures and the loss of a $5.2bn contract with the British government.

The majority of Feld's 60 employees will be retained by EDS, which will receive Feld's information technology and business process implementation software in the deal.

Several Feld executives will be assigned key roles at EDS, which recently reduced its multiple lines of business to three core areas: global sales and client solutions, service delivery and portfolio management.

Charlie Feld, founder of the Feld Group, will become executive vice president of EDS' portfolio management operations. Steve Schuckenbrock, Feld's chief operating officer, will become executive vice president of EDS' global sales and client solutions operations. Both Feld executives will join Dave Clementz, former chief information officer at ChevronTexaco, who was recently named EDS' executive vice president of service delivery.