Hitachi to Acquire EDS Stake in Hitachi Data Systems
Hitachi to Assume Full Control of Joint Venture
TOKYO, JAPAN AND SANTA CLARA, CA
Jan 29, 1999 09:30 AM
Hitachi, Ltd. (NYSE: HIT ) today announced that it has reached an agreement with Electronic Data Systems Corporation (EDS) under which Hitachi will assume full ownership of Hitachi Data Systems Corp. Terms were not disclosed.
Hitachi Data Systems is a joint venture formed by the two companies in 1989 to distribute, sell and service Hitachi's mainframe and storage product lines.
Hitachi Data Systems acquired National Advanced Systems, Inc. from National Semiconductor Corporation in 1989, and is based in Santa Clara, Calif.
In making the announcement, Toshihiko Odaka, board director and group executive, Computer Products Group of Hitachi, Ltd., said, "The evolving nature of today's information systems marketplace dictated our action to assume full ownership of Hitachi Data Systems. With this agreement, we are now in a position to strengthen and broaden the resources and product mix of Hitachi Data Systems as a solution provider in North America."
"We greatly value the relationships forged and the customers we have served in this joint venture," said Gary Moore, senior vice president of EDS and first president and CEO of Hitachi Data Systems. "It has been a great pleasure and privilege to work with our colleagues at Hitachi Data Systems on this project."
EDS and Hitachi, Ltd. will continue the professional affiliations formed in other capacities. Hitachi, Ltd. will assume control of Hitachi Data Systems no later than April 21, 1999. Jeff Heller, board member of Hitachi Data Systems and EDS president and COO, and Gary Moore will both resign their posts at the time of the transaction.
Hitachi Data Systems markets high-performance enterprise servers, storage systems, and professional services worldwide. Hitachi Data Systems meets its customers' computing needs with the broadest line of the highest performance S/390(R)-compatible servers in the world, including the HDS Skyline Series[tm] and the HDS Pilot Series,[tm] as well as the Hitachi Freedom Storage subsystems which provide multiplatform support across S/390, UNIX, and Windows NT environments.
Hitachi Data Systems is headquartered in Santa Clara, California, and employs 2,300 people and operates in 30 countries worldwide. For on-line information about Hitachi Data Systems products and services, access our products and services pages.
Hitachi, Ltd., headquartered in Tokyo, Japan, is one of the world's leading global electronics companies, with fiscal 1997 (ended March 31, 1998) consolidated sales of 8,417 billion yen ($63.8 billion*). The company manufactures and markets a wide range of products, including computers, semiconductors, consumer products and power and industrial equipment. For more information on Hitachi, Ltd., please visit Hitachi's Web site at http://www.hitachi.co.jp.
*At an exchange rate of 132 yen to the dollar.