Compaq to Buy Digital for US$9.6 Billion

Compaq Computer Corp. announced today that it will acquire Digital Equipment Corp. for US$9.6 billion, creating an IT giant capable of delivering everything from sub-$1000 home PCs to high-end, enterprise systems based on the 64-bit Alpha architecture.

Compaq Computer Corp. announced today that it will acquire Digital Equipment Corp. for US$9.6 billion, creating an IT giant capable of delivering everything from sub-$1000 home PCs to high-end, enterprise systems based on the 64-bit Alpha architecture.

Under the terms of the agreement, Digital shareholders will receive $30 in cash and approximately 0.945 shares of Compaq common stock in exchange for each share of Digital stock, the company said. Compaq will issue approximately 150 million shares of stock and $4.8 billion in cash, for a total price of $9.6 billion based on the January 23, 1998 closing price of Compaq stock, the company said.

Upon completion of the merger, Digital will become a wholly-owned subsidiary of Compaq, the company said. Subject to the approval of Digital's shareholders, as well as government regulators, the transaction is expected to be completed in the second quarter of 1998.

Compaq, in Houston, can be reached at +1-281-370-0670, or on the World Wide Web at http://www.compaq.com/.

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