CSC, Hughes cut $1.5 billion information services deal.EL SEGUNDO El Segundo (ĕl sēgŭn`dō), industrial city (1990 pop. 15,223), Los Angeles co., S Calif., on Santa Monica Bay; inc. 1917. Its products include navigation and computer systems, aircraft parts, office machines, telephone apparatus, and , Calif.--(BUSINESS WIRE)--Jan. 3, 1995--Computer Sciences Corp. (NYSE NYSE See: New York Stock Exchange :CSC) and Hughes Aircraft Hughes Aircraft Company was a major aerospace and defense company founded by Howard Hughes. The group was based near Ballona Creek, in Culver City, California, USA, on the Pacific Coast. Hughes Aircraft was acquired by General Motors in 1985. Co., a subsidiary of General Motors, Tuesday said they have agreed that Hughes Aircraft will outsource its information technology services requirements to CSC. Under the terms of a stock purchase agreement and effective Dec. 31, 1994, CSC acquired specific hardware and other information technology assets of Hughes and may acquire additional assets later. Price was not announced. The two companies also signed an eight-year services agreement that will bring CSC revenues of approximately $1.5 billion. The agreement, which is effective Jan. 28, 1995, has successive one-year renewals unless terminated by either company. As part of the agreement, about 1,100 Hughes employees will transfer to CSC. CSC is currently performing work for Hughes Missile Systems in Tucson under a contract that would have run through 2001 and has an estimated value of $200 million. That work will be included under the new agreement. Hughes will rely on CSC to provide a wide range of information technology services for its corporate offices and operating units, including Hughes Aerospace and Electronics Co. and Hughes Space and Communications Co. CSC will support Hughes in the areas of mainframe computers, telecommunications, desktop computers, enterprise servers, applications development, applications maintenance and engineering computing. In addition to Tucson, CSC will support Hughes operations in the California cities of El Segundo, Fullerton, Long Beach and Goleta. The company will also support Hughes marketing and business development offices worldwide. "As the leader in aerospace and defense outsourcing, CSC looks forward to extending the efficiencies and savings we have brought to Hughes' Tucson operation to the entire company," said William R. Hoover, CSC chairman and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. . Added Van B. Honeycutt, CSC president, "Hughes is setting aggressive goals to stay ahead in a very competitive marketplace, and we're committed to contributing strong management and technology innovations to help them reach their goals." Computer Sciences has $2.9 billion in annual revenues, about 55% of which comes from commercial clients and the rest from the U.S. government. The company has headquarters in El Segundo, and has 30,000 employees in 450 offices, primarily in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. , Europe and Pacific Rim Pacific Rim, term used to describe the nations bordering the Pacific Ocean and the island countries situated in it. In the post–World War II era, the Pacific Rim has become an increasingly important and interconnected economic region. countries. CSC provides clients with a wide range of professional services (job) professional services - A department of a supplier providing consultancy and programming manpower for the supplier's products. including management consulting Noun 1. management consulting - a service industry that provides advice to those in charge of running a business service industry - an industry that provides services rather than tangible objects ; business reengineering; and information systems consulting, integration, and outsourcing. CONTACT: Computer Sciences Corp., El Segundo Bruce Plowman or Mary Rhodes, 310/615-0311 |
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