Dollar Thrifty Automotive Group Inc. (NYSE: DTG) and EDS (NYSE: EDS) today announced the signing of a five-year, $150 million information technology (IT) services extension agreement, with new revenue service to EDS of approximately $125 million. Under the agreement, which commences October 1, 2006, EDS will provide DTG with a range of IT services including applications development and maintenance, network, workplace and storage management, back-up and recovery and mid-range hosting services. For the past nine years, EDS has provided DTG with a portion of its data center operations support.
"Dollar Thrifty Automotive Group and EDS have a long-term relationship and this new agreement is the next logical step in the expansion of our partnership," Don Himelfarb, Dollar Thrifty Automotive Group Chief Administrative Officer, said. "In addition to the economic benefits associated with leveraging across the EDS organization, we chose to expand our relationship based on EDS' world-class approach to technology solutions. Also, important to our decision, was the fact that EDS has an existing, large presence in Tulsa as we anticipate a significant number of DTG employees will transition to EDS. Heading DTG's IT organization and relationship with EDS will be Vic Alonzi, DTG Vice President - IT, a seasoned executive with over 20 years of IT experience including over 10 years with DTG."
"EDS has the capability to help us standardize and transform our IT infrastructure and critical business applications," Alonzi said. "A leading technology provider, EDS is a natural fit with DTG's strategy to be a low-cost provider while providing outstanding business value. We look forward to working with EDS in developing and delivering innovative business solutions for both our internal and external customers."
As part of this agreement, EDS will assume responsibility for DTG's infrastructure and will manage more than 4,500 desktop workstations and more than 500 servers. DTG and EDS will work together to develop a flexible platform that supports speed to market and user-friendly outcomes.
"We are delighted to have DTG as a strategic partner as we continue to grow our presence in the travel and hospitality segment," said Jim Dullum, vice president and leader of EDS' Global Transportation industry group. "DTG will take advantage of EDS' recent multi-billion dollar investment in its global delivery model and together we will position both companies for long-term growth in this important market segment."