Hewlett-Packard Co. said Monday it is in talks to acquire Electronic Data Systems Corp., based in Plano, Texas, in a deal that some estimate could be worth $13 billion.
HP declined to provide details but confirmed it is in "advanced discussions" with EDS regarding a "possible business combination."
Such a deal could dramatically reshape the high-tech industry once again, pushing HP further in the business of technology services and closer into competition with IBM Corp.
It also could potentially hurt HP archrival Dell Inc., which has had a close relationship with EDS that has grown from the companies' Texas roots since at least 2000.
Over the years, Dell and EDS have worked closely together to land major contracts, with Dell providing computers and other hardware and EDS providing management and software services.