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Impatient with building a global management consultancy through recruiting, EDS signed a letter of intent on June 6 to acquire rival A.T. Kearney Inc. for about $600 million. The deal will merge 1,600 consultants from EDS, a $10 billion computer services subsidiary of General Motors, into Kearney, a $346 million firm with 1,900 consultants.
The new EDS subsidiary will retain the Kearney name and Chicago headquarters, and will have a combined 1994 annual revenue of more than $500 million. About 52% of Kearney's revenue is from overseas activity.
"This is the first entity of its kind to combine business strategy, operations consulting, and information technology," says Fred Steingraber, Kearney's CEO, who will stay in that position...