EDS to Cut Jobs After Acquisitions
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Electronic Data Systems Corp. plans to cut an unspecified number of jobs after it buys Structural Dynamics Research Corp. and the rest of Unigraphics Solutions Inc. EDS, which already owns 86% of Unigraphics, expects $60 million to $80 million in cost savings by combining the two companies, said Unigraphics Chief Executive Anthony Affuso.
The two companies, which make software used to design and build products such as automobiles and jet engines, will be combined into a new unit that will be based in Cypress, the present headquarters of Unigraphics, he said.
Plano, Texas-based EDS agreed Wednesday to buy Structural Dynamics for $950 million in cash and offered to buy the rest of Unigraphics for $170 million in cash.
EDS shares fell $2.85, or 4.4%, to $61.93. Unigraphics rose $8.04, or 38%, to $29.35. Milford, Ohio-based Structural Dynamics rose $6.71, or 38%, to $24.27.
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