Hp and compaq announced on september 4 that the former would buy the latter at the rate of one compaq stock for 63 of a hp stock at the time of announcement, the deal was valued at about $25. Transcript of the merger of hewlett-packard and compaq:strategy and valuat the merger of hewlett-packard and compaq: strategy and valuation • different workplace cultures in hp and compaq (hp’s culture is based on consensus, compaq’s - on rapid decision making • in the year after the merger, hp showed a decline in revenue. A merger as big and bold as hewlett-packard’s $ 19 billion acquisition of compaq computer in 2002 had never taken place before in technology industry carly fiorina ,hp’s ceo, believed it was the right move for hp the leading technology company in the world.
When hp and compaq announced a $25 billion merger agreement 10 years ago this week on sept 3, 2001, it shocked the industry and sent apprehension and anxiety rippling through the channel as. Case about hp and compaq merger after 6 years the merer is proven succesfull. The proposed merger called for a consolidation of hp’s and compaq’s product lines into four major operating groups: services, imaging and printing, access devices, and information technology infrastructure. (“compaq-hp merger was right after all according to stanford business school research,” 2007, p1) carleton (carly) fiorina spearheaded the merger between hp and compaq, a move which was against some of the wishes of its shareholder and board members.
Hewlett-packard swot analysis strengths hewlett-packard is a global technology company and after its merger with compaq it became world 's biggest computer hardware and peripherals company in the world, ranking 20 in the fortune 500 list. On may 3, 2002, hp and compaq completed the combination of their businesses as a result of the merger, compaq is now a wholly-owned subsidiary of hp and shares of compaq common stock no longer trade on the new york stock exchange. The thesis committee for rani deshmukh sallie mae- usa group and hp-compaq sallie mae & usa group was a huge success due to its successful it integration implementation while hp-compaq merger was a disappointment for the lack of understanding the.
The hewlett packard (hp)-compaq merger was conceived by hp's new chief executive, carly fiorina and involved not only merging two companies with legendary histories (hp made the first mass calculators and compaq produced the first clones of the ibm pc), but two distinct cultures. Overall, the hp compaq merger case seems to show technology pull or demand pull, because it was in fact the popularity of the increasing computer hardware/software manufacturing technology that was pulling the merger into innovation. The effect of hewlett-packard and compaq merger and to derive whether such a merger had any significant impact for the shareholders by measuring the impact on the share price, earnings per share, and price to eps ratios both pre- and post-merger the rest of the paper provides some historical.
Hp – compaq merger “if hp was progressing at such a tremendous pace, what was the reason that the company had to merge with compaq” carly fiorina, who became the ceo of hp in the year 1999, had a key role to play in the merger that took place on 3rd september, 2001. Hp closes book on compaq deal after a rancorous eight-month proxy fight, a three-day trial in delaware, and a bitter boardroom squabble, hewlett-packard completes the largest tech merger in. The merger had to improve hp innovations and economics while strengthening it and providing the critical mass the merger of hp and compaq should be broadly understood and clearly defined it needs to reflect modern business brands and strategies while establishing competitive benefits.
Hewlett-packard swot analysis strengths hewlett-packard is a global technology company and after its merger with compaq it became world’s biggest computer hardware and peripherals company in the world, ranking 20 in the fortune 500 list. Investors and security holders of hp and compaq are urged to read the definitive joint proxy statement/prospectus filed with the sec on february 5, 2002 and any other relevant materials filed by hp or compaq with the sec because they contain, or will contain, important information about hp, compaq and the merger.
Merger of hewlett-packard and compaq mergers, acquisitions and restructuring introduction throughout 1999 and 2000 in the midst of an increasingly competitive business environment, hewlett-packard’s board of directors and executive management evaluated numerous alternatives for business growth to protected the company’s viabilityalthough hp’s imaging and printing group (ipg) dominated. The hp-compaq merger it was around this time that the two companies began to seriously consider a merger in april 2001, mckinsey, a top strategy-consulting firm, hired by hp, concluded that while hp was strong in unix-based servers and consumer pcs, it was weak in the nt server market and storage devices. Introduction hewlett-packard company is a leading global provider of computing and imaging solutions and services for business and home, and is focused on capitalizing on the opportunities of the internet and the emergence of the next-generation appliances, e-services and infrastructures. 1 1 hp + compaq = a walk-through of a merger valuation 2 hp’s major concerns ¾need to attack the enterprise market more aggressively primary engine for value creation: $800bn market in 2000 growing.