EDS, the $16.9 billion computer services company, today disclosed plans to form EDS-A.T. Kearney Ventures, a global corporate venture fund committed to spending up to $1.5 billion on business-to-business and Internet investments.
The move continues the company's transformation from an old-line firm with legacy-system expertise to an E-business service provider. In recent months, EDS has been working to increase its strengths in the Internet services arena, most recently forming a separate E-services division within its organization.
The move follows on the heels of similar announcements by Andersen Consulting and Cambridge Technology Partners. Earlier this week, Andersen said it will invest up to $1 billion during the next five years in Internet companies, and Cambridge said it will fund startups in return for an equity stake in their public offerings.
The fund will be headed by Rick deNey, EDS senior VP of corporate strategy and development, and David Asper, an A.T. Kearney VP.
At noon, EDS's stock was up 5/8 to 64-11/16.