HP + Compaq = ?

The new entity that will emerge from the merger of HP and Compaq will lead in most of the global hardware market. It will also give a serious challenge to IBM's lead in services segment. The merger is expected to generate cost synergies reaching approximately $2.5 billion annually and drive a significantly improved cost structure. Based on both companies' last four reported fiscal quarters, the new HP would have approximate pro forma assets of $56.4 billion, annual revenues of $87.4 billion and annual operating earnings of $3.9 billion. It would also have operations in more than 160 countries and over 145,000 employees.

Read the stories below for a complete coverage on the announcement. Of course, watch this space for the latest updates.

Consolidation is the key to success: Analyst

Now that the merger is official, the reaction from industry players and analysts has been varied. Though the combined entity will now be worth $87 billion, numbers alone may not count unless efforts are taken up to consolidate logistics, work process and channel network, warn analysts.

Industry welcomes HP-Compaq merger

The immediate reaction to the news of the HP-Compaq merger was a mixture of shock and surprise. Though vendors kept off from commenting to the media, the players in the channel and distribution segment perceive this move as extremely clever. With a combined turnover expected to be $87 billion, IBM’s time of reckoning may have finally come.

Compaq’s business plan was sketched on placemat

Compaq began from a sketch on a placemat at a Houston restaurant and went on to become the world’s number one computer maker. Compaq that began as an idea by three former Texas Instrument engineers no longer exists. HP now acquires the company for $25 billion.

Hewlett Packard and Compaq — a comparative study

Comparing the evolution of two giants in the IT industry.

HP confirms merger with Compaq

HP-Compaq merger, forming an entity worth $87 billion, will offer a complete set of IT products and services. The new entity will be headquartered in Palo Alto and retain a significant presence in Houston. Carly Fiorina, will be chairman and CEO of the new HP, while Capellas and four other members of Compaq's current Board of Directors will join HP's Board.

HP to buy Compaq for $25 bn

Hewlett-Packard is all set to buy rival computer maker Compaq

Computers for $25 billion in stock as reported in The New York Times. HP’s Carly Fiorina will be the company's chairman and CEO while Compaq chairman and CEO Michael D Capellas will be president of the new entity.