EDS announced the largest acquisition in its history today with the planned purchase of Systematics AG; providers of integrated e-business and IT solutions, for approximately $570 million.
Under terms of the agreement, EDS will pay approximately $430 million in cash and issue $140 million in EDS shares to acquire all outstanding Systematics shares.
EDS are said to have entered into agreements with certain shareholders of Systematics to acquire approximately 70 percent of the outstanding shares for $395 million at $27 per share.
On or before April 9, EDS intends to launch an all-cash tender offer for the remaining publicly held shares for $175 million or $31 per share.
Systematics reported revenues of $570 million for the year ending December 31, 2000. At year-end, Systematics reported net working capital of $41 million, net debt of $93 million, and shareholder equity of $175 million.
The agreements are subject to closing conditions, which include clearance of the acquisition by the Merger Task Force of the European Commission and EDS’ acquisition of at least 75 percent of the outstanding shares of Systematics.