EDS and Towers Perrin Name New Company; Announce Board
EDS (No. 2 on the VARBusiness 500) and Towers Perrin finally named their new baby. More than one month after the two companies announced they were creating a new company to pursue human-resources outsourcing contracts, they've announced its name: ExcellerateHRO.
The deal closed March 1. This new, immediately significant player in this vertical will post roughly $600 million in global sales, with about half coming from each company. It has approximately 400 clients in the United States, Canada, Europe, and Central and South America.
EDS owns 85 percent of the company, which will be run by its new CEO Steve Bohannon, who formerly was EDS vice president of HR services. EDS will pay an estimated $420 million to Towers Perrin as a part of the agreement.
ExcellerateHRO will combine Towers Perrin's pension/health/welfare Administration Solutions business and EDS' payroll and related HR outsourcing business. ExcellerateHRO's portfolio will offer a comprehensive set of HR outsourcing solutions across the areas of benefits administration services, payroll, compensation administration, workforce administration and relocation, recruitment and staffing, and workforce development.
In addition, Towers Perrin will provide HR consulting services to ExcellerateHRO clients. And EDS' business process outsourcing unit also provides other enterprise-shared services, including finance and accounting, and supply-management services. ExcellerateHRO will also leverage EDS CRM, government health care and financial services BPO.
Meanwhile, ExcellerateHRO has announced a new company board of directors. The members of the new board include:
*Steve Schuckenbrock, EDS executive vice president of Global Sales & Client Solutions, who will serve as the chairman of the board
*Steve Bohannon, CEO of ExcellerateHRO
*Bob Hogan, managing director of Towers Perrin
*Joe Eazor, EDS vice president and general manager of Business Process Outsourcing Services
*Tom Egan, EDS Vice President of Business Process Outsourcing Service Delivery