NU Online News Service, Jan. 19, 2005, 9:51 a.m. EST

Towers Perrin Inc., Philadelphia, is joining forces with Electronic Data Systems Corp., Plano, Texas, to set up a human resources outsourcing unit.[@@]

EDS has agreed to pay $420 million for control of 85% of the unit, and Steve Bohannon, EDS vice president of human resources services, will run the unit, according to EDS and Towers Perrin.

The unit will include Towers Perrin’s benefits administration business and the EDS payroll and HR outsourcing business.

In related news, Towers Perrin has negotiated a separate, $365 million information technology agreement with EDS.