Feeds

Compaq buys Inacom's PC operations

So much for channel assembly

  • alert
  • submit to reddit

High performance access to file storage

Compaq has stepped up its direct business by paying $370 million cash for Inacom’s PC assembly facilities. The deal, predicted here last month, will see the US distributor hand over its four US assembly and distribution operations and 2,500 staff, as well as its systems for managing customer orders online. The agreement is expected to be finalised by March 31. Big Q plans to spin the acquired assets off into a separately managed, wholly owned subsidiary led by Mike Winkler, senior vice president and group general manager of Compaq’s commercial personal computing group. The deal will allow the Houston-based vendor to directly provide US users with tailor-made PCs and track their purchases, Compaq said. "This purchase makes great strategic sense for Compaq because it gives us the right capabilities quickly and cost-effectively," said Michael Capellas, Compaq president and CEO. "We’ll be better equipped to meet the diverse and changing needs of our US customers – particularly our major accounts which clearly want to go direct – increasing our potential for profitable growth." But analysts claimed the deal would not be enought to plug the growing gap between Compaq and direct demon Dell. While boosting Compaq’s manufacturing capabilities, it would still not give it Dell’s direct relationship with its customers, they claimed. "It doesn’t get Compaq closer or further from a customer," Raymond James & Associates analyst Robert Anastasi told today’s Wall Street Journal. The four acquired facilities are based in Indianapolis; Omaha, Nebraska; Swedesboro, New Jersey; and Ontario, California. Inacom will still deal with its own on customers, but will buy PCs from Compaq instead of customising them itself. In November, Compaq admitted its supply chain needed speeding up and ditched its channel-only policy for volume sales in the UKRelated stories Dell eats into Compaq’s European sales Compaq offers crumbs of comfort with small Q3 profit

High performance access to file storage

More from The Register

next story
Dropbox defends fantastically badly timed Condoleezza Rice appointment
'Nothing is going to change with Dr. Rice's appointment,' file sharer promises
Audio fans, prepare yourself for the Second Coming ... of Blu-ray
High Fidelity Pure Audio – is this what your ears have been waiting for?
Did a date calculation bug just cost hard-up Co-op Bank £110m?
And just when Brit banking org needs £400m to stay afloat
Sorry London, Europe's top tech city is Munich
New 'Atlas of ICT Activity' finds innovation isn't happening at Silicon Roundabout
MtGox chief Karpelès refuses to come to US for g-men's grilling
Bitcoin baron says he needs another lawyer for FinCEN chat
Zucker punched: Google gobbles Facebook-wooed Titan Aerospace
Up, up and away in my beautiful balloon flying broadband-bot
Apple DOMINATES the Valley, rakes in more profit than Google, HP, Intel, Cisco COMBINED
Cook & Co. also pay more taxes than those four worthies PLUS eBay and Oracle
prev story

Whitepapers

Top three mobile application threats
Learn about three of the top mobile application security threats facing businesses today and recommendations on how to mitigate the risk.
Combat fraud and increase customer satisfaction
Based on their experience using HP ArcSight Enterprise Security Manager for IT security operations, Finansbank moved to HP ArcSight ESM for fraud management.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Five 3D headsets to be won!
We were so impressed by the Durovis Dive headset we’ve asked the company to give some away to Reg readers.
SANS - Survey on application security programs
In this whitepaper learn about the state of application security programs and practices of 488 surveyed respondents, and discover how mature and effective these programs are.