Sky wins 318m settlement from EDS

By Andrew Laughlin,

Sky has announced that it will receive a total settlement of 318m after successfully concluding its long-running legal wrangle with Electronic Data Systems.

EDS today agreed a final settlement with Sky after losing a court battle in January over a collapsed multi-million customer relationship management (CRM) contract.

In summer 2000, Sky selected EDS for a 48m contract to design, build and implement a CRM system in its Scottish contact centres in Livingston and Dunfermline.

However, the relationship was terminated by Sky in March 2002 after EDS failed to meet its contractual obligations, leading to the satellite broadcaster having to bring the project in-house.

Sky initially wanted over 700m in damages, but later revised its settlement expectations down to covering the reported 265m it cost to successfully roll out its own CRM system.

EDS, which is now owned by Hewlett-Packard, has agreed to pay a total of 318m in damages, costs and interest to Sky. The company has already made an interim payment of 270m in February.