The addition of Proxicom will strengthen Compaq’s value proposition to customers by supporting our already significant presence in telecommunications and financial services markets, and extending our capabilities in markets including retail, automotive, manufacturing, and media and entertainment, said Peter Blackmore, executive vice president, Worldwide Sales and Services of Compaq. Proxicom maximizes many of our existing enterprise customer relationships, deepening and broadening our value within these accounts due to both its vertical market expertise and robust skills in e-business, wireless and emerging technologies.
Under the terms of the acquisition agreement, Compaq will promptly commence a tender offer for all outstanding Proxicom shares. Any Proxicom shares not acquired by Compaq in the tender offer will be acquired in a second step merger. This acquisition is subject to customary closing conditions and government approvals, and is expected to be completed toward the end of the second quarter. The board of directors of each company has approved the acquisition and two of Proxicom’s largest shareholders, Proxicom Chairman and CEO Raul Fernandez and General Atlantic Partners, have agreed to tender their shares into the offer and otherwise support the transaction. The acquisition will be neutral to earnings in the second half of 2001 and accretive in 2002.
As we stated in our first quarter earnings call this week, Compaq is aggressively focused on five key initiatives to drive increased growth and profitability, including aggressive go-to-market programs, continued product innovation, expansion of global services, permanent reductions in inventory and substantial reduction in structural cost, Blackmore stated. Clearly, the Proxicom acquisition is a strong step in growing our $7 billion Global Services business and in providing complete end-to-end solutions to customers.
Compaq Global Services is one of the largest and most experienced service organizations in the industry. Built on more than 40 years of experience, the unit’s 38,000 professionals deliver consulting, integration, management and support services in more than 200 countries.
Proxicom will be a wholly owned subsidiary of Compaq Computer Corporation reporting to Jeff Lynn, vice president and general manager, Compaq Global Services. The unit will be called Proxicom, a Compaq Global Services Company.
We believe that the customer-oriented synergies across Compaq and Proxicom in skill set and culture will help ensure a smooth integration of our businesses, Lynn said. Proxicom’s great customer relationships, depth of talent and proven track record will further enhance our ability to bring innovative solutions to customers around the world.
Proxicom, Inc., founded in 1991, has grown to be one of the leading consulting and professional development firms, pioneering a unique approach to deliver e-business solutions for global enterprise clients through the integration of Internet technologies, strategies and creative design. The company provides specialized e-business development expertise across a broad spectrum of industry segments.
We are delighted to be joining Compaq with whom we’ve worked in both customer and partner roles, said Proxicom founder Fernandez. By pooling our expertise and sharing best practices across our organizations, we will be able to offer broader, enhanced capabilities to our clients and increased opportunities to our employees.
