EDS Acquiring Systematics AG

In a move that doubles its footprint in Germany, Plano, Texas-based EDS is acquiring German information
technology services firm Systematics AG in a cash and stock deal
valued at about $570 million.

Systematics has expertise in CRM, ERP, digital value chains and systems
integration.

“EDS will be better able to bring comprehensive, targeted industry service
offerings to Europe by combining Systematics’ local industry knowledge and
systems integration expertise with our significant strategic infrastructure
outsourcing business,” said Dick Brown. EDS’ chairman and CEO.

EDS said it will pay approximately $430 million in cash and issue $140
million in EDS shares to acquire all outstanding Systematics shares.

Systematics serves clients through four divisions: e-consulting,
e-applications, systems services and hosted services. The company has a major
presence in strategic business locations including Berlin, Cologne, Munich,
Frankfurt and Stuttgart.

EDS said the acquisition “is expected to be neutral to earnings for the
remainder of 2001 and accretive in 2002.”

“Big companies like EDS have been trying to get into the German market for
some time now and they can’t do it through organic growth alone — they need
to make acquisitions,” Markus Golinski, an analyst at Bank Sal Oppenheim Jr
& Cie, told Bloomberg News.

The purchase will give EDS about $1 billion in annual sales in Germany, Brown
said.

EDS shares were down $1.36 to $54.50 in mid-morning trading.

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