Thursday February 11, 12:08 am Eastern Time
EDS to acquire MCI WorldCom unit - sources
NEW YORK, Feb 10 (Reuters) - Electronic Data Services Corp. (NYSE:EDS - news), the world's second-largest provider of computer services, is expected to acquire MCI WorldCom Inc.'s (Nasdaq:WCOM - news) Systemhouse unit, which offers computer outsourcing and systems integration, sources said on Wednesday.
An announcement is expected as early as Thursday morning. MCI WorldCom declined to comment. EDS could not be immediately reached for comment.
As part of the long-awaited deal, MCI WorldCom, the No. 2 U.S. long distance company, will outsource its information technology services to EDS. In exchange, MCI WorldCom will provide communication services for EDS, sources familiar with the situation said.
Additional details were not immediately available.
The deal mirrors a similar agreement between AT&T Corp., the No. 1 U.S. long distance company, and International Business Machines Corp., the world's largest computer services company, which was announced in December.
Under that deal, AT&T agreed to buy IBM's global communications network and the two companies agreed to contract about $9 billion in services to each other.
Separately, MCI WorldCom is expected to report fourth-quarter earnings on Thursday. |
