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HP buys color print firm Indigo

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CIOL Bureau
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CHICAGO: Computer and printer manufacturer Hewlett-Packard Co., which earlier

this week made a $25 billion bid for Compaq Computer Corp., said on Thursday it

would pay up to $882 million in stock and cash to buy industrial printing

systems firm Indigo NV.

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HP already had a minority stake in Indigo, which makes high-speed color print

technology, an area HP expects will take off in the commercial printing market.

The deal would add to HP's earnings per share in the first full year of

operation, HP, said in a statement.

HP said it had owned approximately 13.4 per cent of Netherlands-based Indigo

and would pay $629 million in stock for the remainder, with an additional cash

payment of up to $253 million contingent upon Indigo hitting revenue targets.

Hewlett-Packard shares closed on Thursday at $17.70, off 51 cents or 2.8 per

cent, reducing the value of its all-stock offer for Compaq to $19 billion from

the $25 billion value it announced based on last Friday's closing price.

(C) Reuters Limited 2001.

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