Hitachi executives said that the company was taking sole control over Santa Clara, California-based HDS for competitive reasons. Hitachi Data Systems markets enterprise servers, storage systems, and professional services worldwide. Financial terms of the deal were not disclosed.
Through HDS, formed a decade ago, EDS and Hitachi partnered to distribute, sell, and service Hitachi's mainframe and storage products. In 1989, HDS acquired National Advanced Systems from National Semiconductor.
Hitachi said it plans to purchase EDS's interest in HDS by April 21. At the time of the transaction, HDS board members Jeff Heller, president and chief operating officer of EDS, and Gary Moore, will both resign their posts.
The companies said they will continue their professional relationship in other ways.