IT services company EDS has agreed to pay $420m (£235m) for the HR outsourcing business of consultancy Towers Perrin.
The pair will form a joint business specialising in HR outsourcing services, combining Towers Perrin’s technology and the business processing expertise of EDS, which will own 85 per cent of the new company.
“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 will serve more than 33 million active and retired employees. It will be headed by Steve Bohannon, EDS vice-president of HR services.
Around 2,500 Tower employees will transfer to the new company as part of the deal.