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Hewlett-Packard buys Compaq for $ 25 billion.

Quite unexpected news was announced tonight: Hewlett-Packard announced that it has completed negotiations with Compaq Computer and is acquiring the latter for $ 25 billion. shares. Call it merge, merge, whatever you like: buying remains buying.

A combined company with a total revenue of $ 87.4 billion. will be led by Carleton Fiorina, the current CEO of HP, as CEO and chairman, and Michael Capellas, President and CEO of Compaq, will become president of the new company. Capellas and four other Compaq board members will also serve on HP’s board.

The merger looks like this: HP accounts for 64% of the new company, Compaq – 36%. The final completion of the transaction is expected in the first half of 2021. Under the terms, Compaq shareholders will receive 0.6325 HP shares for each Compaq share .

The combined profit of the combined company, which does business in 160 countries of the world and now has 145 thousand employees, is expected to be about $ 2.5 billion per year. The company will be divided into four main divisions:

  • Graphic / print division
  • Division of Computer Systems
  • Information Technology Division
  • Service department

    This is how the situation has now changed among the leaders of the computer world. It is worth noting that since many of the Compaq and HP PC models are quite similar, the merger of the production bases will be almost seamless. The main competitors of the combined company in the business PC market, Dell and IBM, will now have a very difficult time, and about the fifth company, Gateway, it is already rumored that it will most likely be sold by one of the Japanese companies or will be bought by Dell or IBM.

    It seems that the announcement of the merger of HP and Compaq is only the first in a series of surprises that the new merged company will present us with. Now, wait for comments on the [timely? :-)] the sale of the Alpha division, and a new redistribution of the server market… Actually, now we can say with confidence: the new business season began not boring.

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