Consulting
References Practices Case
July 22, 1994
EDS, a unit of General Motors Corp., said it plans to take a 25% stake in Lufthansa's information-technology division, which would be a separate company called Systemhaus GmbH. Lufthansa would own 75% of Systemhaus.
An EDS spokesman said Systemhaus would initially target airports and airlines as customers. Eventually Systemhaus plans to sell services to others in the travel industry, including hotels, railroads and car-rental companies.
About 30 EDS workers and 130 Lufthansa workers will transfer to Systemhaus. Lufthansa would buy almost all data-technology services from Systemhaus in a contract valued at $290 million to $300 million a year for at least three years, an airline spokesman said.
EDS beat out International Business Machines Corp. and AMR Corp. for the Systemhaus deal, Lufthansa said.
Separately, EDS won a seven-year contract to provide information-technology services to Diversified Pharmaceutical Services Inc., a prescription-drug benefit manager in Bloomington, Minn.
EDS also agreed to provide product development support to 3Net Systems Inc., a data-systems developer based in Rancho Cordova, Calif., and to license and distribute certain 3Net products. In the deal, EDS agreed to acquire warrants to purchase a 9.9% stake in 3Net.