Compaq buys Digital for $9.6bn

Take-over creates the second largest computer company in the world

Compaq Computer Corporation and Digital Equipment Corporation today announced the completion of a definitive merger agreement. The transaction will be the largest acquisition in the history of the computer industry, valued at $9.6 billion

"We put tremendous value on the customer relationships Digital has cultivated over the past 40 years. We are committed to supporting these key customer relationships by investing in Digital's strategic assets, particularly its worldwide service organization, as well as its 64-bit leadership with Alpha microprocessors, OpenVMS, Digital UNIX and Windows NT enterprise systems, open storage and software products," said Eckhard Pfeiffer, president and CEO, Compaq.

"Digital's focused enterprise strategy coupled with demonstrable improvements in operational performance make this a timely choice for us," Pfeiffer said. In Digital's recently reported second quarter, profits doubled and the company experienced tremendous growth in its target markets.

These details have been taken from the Compaq web site, and you can read the full story HERE

More details to follow later in the week.