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Technology Stocks : Compaq -- Ignore unavailable to you. Want to Upgrade?

To: hlpinout who wrote (90982)	4/29/2001 10:10:26 PM
From: hlpinout	Read Replies (1) \| Respond to of 97611

More deals possible? --Compaq Agrees To Buy Proxicom, Says More Deals Possible Denies channel conflict will arise By Edward F. Moltzen & Craig Zarley, CRN New York 6:29 PM EST Thurs., Apr. 26, 2001 E-mail this article Print this article Breaking News Compaq to SPs: Let's Fight Dell Bowstreet And Accenture Team Up To Deploy Web Services Microsoft To Formally Launch Office XP On May 31 Sun President Says IBM Numbers Mask Real Picture Layoffs? What Layoffs?: IT Positions Abound How To Beat The Soft Economy 20 Tools You Need To Beat The Economy Compaq-Proxicom Deal: Solution Providers To 'Wait And See' Compaq plans to buy integrator Proxicom in a $266 million deal that will add almost 20 percent more service professionals to Compaq Global Services in North America, the companies said. The deal, which adds approximately 1,000 consultants to Compaq's existing 5,000 North American Global Services consultants, is just the beginning, says Peter Blackmore, Compaq's executive vice president of Worldwide Sales and Services. "We are looking at additional acquisitions [in the e-consulting sector]," Blackmore says. Vertical acquisitions in geographies outside the United States are possible targets, he adds. Compaq's pending acquisition of one of its partners comes at a time the vendor agreed to give solution providers the names of all its large, global direct accounts to ease conflicts and create efficiency. For the first time, Compaq will share with partners the names of 250 to 300 large global customers to which it sells direct, says Dan Vertrees, the company's vice president of North American channel sales. But Blackmore says of the Proxicom acquisition: "I don't see any conflict with channel partners or SIs [systems integrators]." He says the acquisition will complement and not conflict with its current alliances with KPMG Consulting, Cap Gemini and others. Jeff Lynn, vice president and general manager of Compaq's services strategy, added, "Partnering is very important to Compaq's overall strategy. We do not see this as potentially additionally competitive to our existing partner relationships." Compaq agreed to pay $5.75 per share for Proxicom, which is mostly a U.S.-based operation. Proxicom shares closed at $4.33 on Nasdaq at the end of the regular trading day Thursday. Proxicom maintains practices in several large enterprise based vertical markets including the auto and financial industries. Its clients include America Online, General Motors and Merrill Lynch. Once the deal is completed, Proxicom will act as an independent business unit within Compaq Global Services, Compaq said. Earlier this week, Compaq's channel executives told two dozen channel partners in a meeting that, among other things, they would work to provide more SKU-able services offerings to solution providers, Compaq said Thursday. Directors of both companies have already approved the transaction, which now awaits shareholder approval.