First Union Corp. has turned to Electronic Data Systems Corp. to help with merger-related technology conversions.
Under a five-year agreement, Plano, Tex.-based EDS will participate in consolidation aspects of at least two acquisitions-Signet Banking Corp., Richmond, Va., and Covenant Bank, Haddonfield, N.J.
Charlotte, N.C.-based First Union has not decided whether EDS will be involved in the integration of Philadelphia's CoreStates Financial Corp., a megadeal announced last month.
First Union did not disclose its terms with EDS, but bank executives said the deal succeeds a 10-year, $400 million outsourcing contract Signet had signed with EDS in 1991.
"First Union and EDS chose to extend the existing relationship," said Austin Adams, First Union's executive vice president for automation and operations. "We look forward to support from EDS in several areas, including development of systems in the areas of human resources, account analysis, and capital management."
First Union has some history with EDS. The technology services giant helped First Union merge with First Fidelity Bancorp. in 1995. It also has done the North Carolina company's credit card processing the last few years.
In the new deal, 190 Signet employees who had transferred to EDS under the 1991 contract will work on the conversion either at First Union offices or in an EDS center in Richmond.
In addition, EDS said, it is sending more than 50 systems engineers to First Union's technical facility in Charlotte.
The Signet conversion will be one of EDS' largest projects, said Michael Littell, president of the company's U.S. banking services unit. He said 60 Signet computer applications must be converted to First Union systems.
Mr. Littell and Mr. Adams said they expect the conversion to be completed by mid-March.
