NEW YORK (CNN/Money) – Information technology services company Electronic Data Systems Corp. Monday said it will pay $63.5 million for Loudcloud Inc.'s Web-hosting business and entered a three-year software licensing deal with the company worth $52 million.

The announcement sent Loudcloud's (LDCL: up $0.31 to $1.94, Research, Estimates) shares soaring more than 22 percent on Nasdaq. Shares of EDS (EDS: up $1.28 to $49.22, Research, Estimates) were trading 2 percent higher on the New York Stock Exchange.

Loudcloud also said it will cut roughly 140 jobs, or 36 percent of its staff, as a result of the sale of its Web-hosting unit, previously the company's core business line. Most of those employees are expected to move over to EDS.

Additionally, Loudcloud said it will change its name to Opsware Inc. and will focus on developing IT management software.

The company – co-founded by Marc Andreessen, who also founded Netscape – now plans to focus its efforts on software used to manage Internet infrastructures for online-intensive businesses. Its products will carry out functions such as automating and controlling software updates and tracking system changes on servers.

EDS said it will add Loudcloud's 50 Web-site management customers to its roster of about 250 companies for which it currently provides IT management services. Some of Loudcloud's customers include U.S. home mortgage lender Fannie Mae and Ford Motor Co.

Loudcloud, based in Sunnyvale, Calif., had forecast revenue from its Web-hosting business of roughly $75 million for the fiscal year ending next March.

EDS plans to deploy Opsware management software across its infrastructure of more than 50,000 servers in its data centers and at its customer locations throughout the world. The company said it expects to save more than $100 million as a result of the deployment of the software.

The acquisition is expected to be completed in September of this year, and EDS said it expects its earnings will not be affected one way or the other in 2002, but it expects the deal will improve its profitability in 2003.