Hewlett-Packard CEO Mark Hurd smiles during a conference in San Francisco (File)

Hewlett-Packard, the world's biggest maker of personal computers, announced a nearly $14-billion deal to buy Electronic Data Systems Corporation Tuesday.

The combined computer giant would have more than 200,000 employees and be better able to compete with IBM in the computer services field.

IBM's computer services revenue was more than $54 billion last year, while Hewlett-Packard took in more than $16 billion. Combining Hewlett-Packard and Electronic Data Systems will nearly double revenue in this area.

HP's efforts to expand in computer services will benefit from Electronic Data System's expertise in managing information technology operations of other companies and government agencies.

Some information for this report was provided by AFP and Reuters.