Compaq buys Zip2 for over $220 million
Deal will add localised services to AltaVista's national coverage
Compaq's Internet portal subsidiary, AltaVista, has bought Zip2, a developer of localised portal-building technology. Financial terms of the deal were not disclosed, but AltaVista CEO Rod Schrock told US wire Cnet that the company's cash purchase of the privately-held Zip2 had exceeded its $220 million takeover of Shopping.com. AltaVista will use Zip2's technology to provide localised information and connect users to online businesses in their area. The company claimed that local e-commerce accounts for 90 per cent of all Internet business transactions. "We plan to partner with local media companies and extend the Zip2 platform for the local merchants to sell products locally," said Schrock. Zip2 already has partnerships with numerous media companies throughout the US. Its Business Directory service lists over 16 million companies across the States. In addition to its own portal, Zip2 licenses its technology to local content providers. ® See also Pfeiffer to re-engineer Compaq as Internet company
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