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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): February 16, 2000
COMPAQ COMPUTER CORPORATION
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(Exact Name of Registrant as Specified in its Charter)
Delaware 1-9026 76-0011617
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(State or Other Jurisdiction of (Commission File Number) (IRS Employer
Incorporation or Organization) Identification No.)
20555 SH 249
Houston, Texas 77070
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(Address of Principal Executive Offices) (Zip Code)
(281) 370-0670
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(Registrant's telephone number, including area code)
None
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(Former Name or Former Address, if Changed Since Last Report)
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ITEM 5. Other Events.
In a release dated February 16, 2000, Compaq Computer Corporation (NYSE:
CPQ) announced the formation of Custom Edge and the completion of its
acquisition of certain assets from InaCom Corp. (NYSE: ICO) for $369.5 million.
The news release is attached as Exhibit 99.
ITEM 7. Exhibits.
Exhibit 99 News Release dated February 16, 2000 is attached.
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
COMPAQ COMPUTER CORPORATION
Dated: February 18, 2000 By: /s/ Ben K. Wells
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Name: Ben K. Wells
Title: Vice President and Treasurer,
Acting Chief Financial Officer
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Exhibit 99
Compaq Computer Corporation P.O. Box 692000 News Release
Public Relations Department Houston, Texas 77269-2000
Tel 281-514-0484
Fax 281-514-4583
http://www.compaq.com
FOR IMMEDIATE RELEASE
Compaq Announces Formation of Custom Edge
as it Completes Inacom Transaction
HOUSTON, February 16, 2000 - Compaq Computer Corporation (NYSE:CPQ)
today announced the formation of Custom Edge and completion of its acquisition
of certain assets from Inacom for $369.5 million.
"We are moving quickly to advance Compaq's direct strategy, evidenced
by the rapid completion of this transaction and establishment of Custom Edge in
just six weeks," said Michael Capellas, Compaq President and Chief Executive
Officer. "Custom Edge will significantly enhance Compaq's ability to deliver the
industry's leading portfolio of Internet access and infrastructure products and
solutions directly to customers in the U.S."
Custom Edge is a wholly owned subsidiary of Compaq reporting to Mike
Winkler, Senior Vice President and Group General Manager, Commercial Personal
Computing Group (CPCG). Mike Steffan is General Manager of Custom Edge and will
manage the same capabilities he oversaw as the former Senior Vice President
Product Operations for Inacom. The new subsidiary provides the scale and
capacity needed to help CPCG realize its goal of distributing 60 percent of its
products directly and through the company's Partner Direct and reseller agent
direct programs in North America by the end of this year.
"Custom Edge provides Compaq with the best-in-class complex
configuration and end-to-end order management capabilities, as well as the
fulfillment capacity to meet the
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direct business requirements of our U.S. customers - particularly our major
accounts," said Winkler. "We're thrilled to welcome to Compaq a great team of
professionals who form the new foundation for our U.S. direct PC business.
"Through an outsourcing agreement, we've already begun moving products
to the Small and Medium Business market in advance of the close," Winkler added.
"We will continue to drive additional volume into Custom Edge to fully leverage
the capacity that exists today."
Custom Edge brings Compaq customers industry-leading custom
configuration and end-to-end order management capabilities, including:
Custom Configuration. Enhanced custom configuration capability and capacity
including hardware, software image certification, image load, and asset tagging
for the entire range of PC and PC server products along with a substantially
greater array of third party options than direct competitors can offer today.
End-to-end Order Management. Additional depth and world class customer service
in an efficient end-to-end order management system for complex orders, providing
our customers with complete visibility to track their orders from placement to
delivery direct from Compaq. The Custom Edge system allows customers to track
orders via the Internet including pricing, availability, software licensing,
customer specific asset tracking and registry, and order status for all phases
of product delivery.
Compaq also has entered into a services, supply, and sales agreement
with Inacom. Under this agreement, Compaq will use Inacom's service capabilities
in combination with its own to offer customers the full spectrum of lifecycle
services for desktop, mobile, and server environments as well as infrastructure
procurement, support, management, optimization, and disposal. Also, Compaq has
agreed to provide Inacom with a $55.5 million credit facility in connection with
Inacom's expansion of its services business. The first advance under the credit
facility will not be made for 90 days and is subject to certain terms and
conditions.
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About Compaq
Compaq Computer Corporation, a Fortune Global 100 company, is the
second-largest computer company in the world and the largest global supplier of
computer systems. Compaq develops and markets hardware, software, solutions, and
services, including industry-leading enterprise computing solutions,
fault-tolerant business-critical solutions, enterprise and network storage
solutions, commercial desktop and portable products, and consumer PCs. The
Company is an industry leader in environmentally friendly programs and business
practices.
Compaq products are sold and supported in more than 100 countries
through a network of authorized Compaq marketing partners. Customer support and
information about Compaq and its products are available at
http://www.compaq.com.
Compaq, Registered U.S. Patent and Trademark Office. Product names mentioned
herein may be trademarks and / or registered trademarks of their respective
companies. This release contains forward-looking statements based on current
expectations that involve a number of risks and uncertainties. The potential
risks and uncertainties that could cause actual results to differ materially
include the failure of systems associated with order fulfillment; the failure to
close certain contemplated sales; changes in product mix; inventory risks due to
shifts in market demand; continued competitive factors and pricing pressures;
and market responses to pricing actions and promotional programs. Further
information on the factors that could affect Compaq's financial results are
included in its SEC filings, including the annual report on Form 10-K for the
year ended December 31, 1998, and the latest quarterly report on Form 10-Q.
For further information, contact:
Compaq Media Relations Alan E. Hodel 281-518-8932 [email protected]
Compaq Investor Relations 281-514-9549 OR 800-433-2391
[email protected]
