Compaq to pay $370 mln for some Inacom assets
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KLP
siliconinvestor.com
Compaq Enhances Direct Capabilities
Purchases End-to-End Order Management and Complex Configuration Capabilities From Inacom
HOUSTON, Jan. 4 /PRNewswire/ -- Compaq Computer Corporation (NYSE: CPQ) today announced a major step to enhance its direct capabilities in the United States, enabling the company to accelerate its progress toward reducing inventories and speeding cycle time. The company has agreed to purchase certain assets of Inacom Corporation (NYSE: ICO) that are key to Compaq's direct strategy, providing best-in-class complex configuration capabilities along with end-to-end order management and direct fulfillment capacity for approximately $370 million in cash.
"With this significant step, we are advancing Compaq's ability to deliver the leading portfolio of Internet access and infrastructure products, services, and solutions directly to customers with a single point of accountability," said Michael Capellas, President and Chief Executive Officer (CEO). "This purchase makes great strategic sense for Compaq because it gives us the right capabilities quickly and cost-effectively. We'll be better equipped to meet the diverse and changing needs of our U.S. customers -- particularly our major accounts which clearly want to go direct -- increasing our potential for profitable growth."
siliconinvestor.com
Inacom Sells Product Customization and Logistics Operations to Compaq Computer Corporation; Sale Accelerates Inacom's eBusiness Infrastructure Solutions Focus
Additional Long-Term Services Agreement Ensures Inacom Access To Multi-Vendor Product Customization and Logistics and Provides For Compaq Utilization of Inacom Services
OMAHA, Neb.--(BUSINESS WIRE)--Jan. 4, 2000-- Inacom Corp. (NYSE: ICO) announced today that it has entered into a definitive agreement with Compaq Computer Corporation (NYSE: CPQ) to sell certain operations and assets principally related to Inacom's product customization and logistics capabilities. Under the agreement, Compaq will pay $370 million in cash for these operations.
Inacom and Compaq also agreed to enter into a three-year Services, Supply and Sales Agreement. This agreement will give Inacom full access to the product customization and logistics capabilities that are being sold to Compaq. The agreement will also provide for Compaq's use of Inacom's lifecycle and professional services offerings over the same three-year period. This arrangement is expected to provide substantial incremental services revenues to Inacom.
siliconinvestor.com
Compaq to pay $370 mln for some Inacom assets
HOUSTON, Jan 4 (Reuters) - Compaq Computer Corp. (NYSE: CPQ) said on Tuesday it will acquire certain operating assets of computer distributor Inacom Corp. (NYSE: ICO) in a move to increase Compaq's ability to sell personal computers directly to customers as arch-rival Dell Computer Corp. (NASDAQ: DELL) has done.
Compaq said it will pay $370 million in cash for assets that will will help it configure computers for its customers and manage the entire ordering process.
siliconinvestor.com
FOCUS-Compaq to pay $370 mln for some Inacom assets
By Barbara Etzel
NEW YORK, Jan 4 (Reuters) - Compaq Computer Corp. (NYSE: CPQ) said on Tuesday it will buy the ordering system and other assets of computer distributor Inacom Corp. (NYSE: ICO) in a move to boost its ability to sell personal computers directly to customers as arch-rival Dell Computer Corp. (NASDAQ: DELL) now does.
Compaq said it will pay $370 million in cash for assets that will will help it configure computers for its customers and manage the entire ordering process faster and more efficiently.
No. 1 PC-maker Compaq is seeking to transform itself by taking and filling customer computer orders directly in hopes of capturing efficiencies realized by No. 2 PC-maker maker Dell, which builds computers only after they are ordered by a customer.
Compaq said the purchase of Inacom assets will forward its goal of increasing to 40 percent the percentage of computers it sells directly to customers, up from its current level of about 25 percent in the United States.
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