Compaq to acquire Tandem Computers; deal for $3 billion in stock is major step to expand beyond the PC industry
Article Abstract:
Compaq is acquiring Tandem Computer in a $3 billion stock exchange. The move represents Compaq's attempt to leverage itself out of the PC market and into the computer supplier market. Compaq has spent $600 million since 1995 acquiring three computer manufacturing companies that make equipment that connects PCs to networks. Tandem will provide the company with systems that are used in stock exchanges and phone companies and are far more advanced than PCs. News of the acquisition cause Tandem's stock to rise 38% or $5.75 a share, to $20.75. Compaq's stock dropped $2.875 a share, to $103.875. Tandem's sales force was a big selling point with Compaq, as it will provide the company with established relationships between itself and large customers. A relationship it will need in order to compete with IBM and HP.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1997
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Ascend poised to buy Stratus Computer; stock deal of $800 million marks efforts to fuse voice and data networks
Article Abstract:
Ascend Communications is nearing an acquisition of Stratus Computer for $800 million in stock, which illustrate's the Internet's influence in blending voice and data communications. Stratus extended a preliminary board approval in late Jul 1998, while Ascend's board met on Aug 2, 1998, to consider final approval. An official announcement is expected today, barring last-minute obstacles. Financial terms call for Ascend to exchange three-quarters of an Ascend share, amounting to around $33.35, for each of Stratus's approximately 24 million shares, according to insiders. Stratus shareholders would receive a 15% premium based on the Jul 31, 1998, closing price. By comparison, the premium had neared 80% earlier in the week. Stratus, a vendor of high-end computers that operate 24 hours a day, has shifted an increasing amount of its business to selling specialized computers to telephone carriers that operate Signaling System 7 (SS7) software.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1998
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