IT services company EDS has agreed to pay $420m (£235m) for the human resources outsourcing business of Towers...
The pair will form a joint business specialising in human resources outsourcing services combining the Towers Perrin technology and the business processing expertise of EDS, which will own 85% of the new company.
In the UK EDS has a substantial payroll and pensions contract with the Ministry of Defence and has recently won a similar deal in
Towers has also awarded EDS a $365m outsourcing contract to look after its IT requirements over a 10-year period.
Around 2,500 Tower employees will transfer to the new company as part of the deal.
“Our clients want us to be their HR advocates, listen to their challenges and deliver results that matter to the bottom line,” said EDS chief executive officer Mike Jordan. “This new company will lead the market with smart HR business processes that drive efficiencies and integrate with business intelligence.”
The new company will become a major player in the growing HR outsourcing market, with annual global revenues of about £330m, said the two companies.
It will have more than 400 clients worldwide and serve more than 33 million active and retired employees. It will be headed by Steve Bohannon, EDS vice-president of HR services.