HP to Acquire Comdisco Technology Services
Hewlett-Packard Company announced earlier this week that it has signed a definitive agreement with Comdisco Inc. to acquire substantially all of Comdisco's Availability Solutions (Technology Services) business for $610 million in cash, subject to certain closing adjustments. The units included in the agreement provide business continuity and complementary consulting services for mission-critical environments. They employ more than 1,300 employees worldwide and generated approximately $440 million in revenues during Comdisco's fiscal year 2000, ended Sept. 30.
Separately today, Comdisco announced that its parent company and 50 of its U.S. domestic subsidiaries have filed voluntary petitions for relief under chapter 11 of the U.S. Bankruptcy Code in the U.S. Bankruptcy Court for the Northern District of Illinois. Comdisco's operations outside of the U.S. are not included in the filing. The agreement between the two companies is subject to the bankruptcy sales process and bankruptcy court and regulatory approvals.
Under the terms of the transaction, which is expected to close in HP's fourth fiscal quarter, ending Oct. 31, 2001, HP will assume certain, limited liabilities. HP expects to integrate the Comdisco continuity and professional services businesses within its HP Operations organization, which is part of HP Services.
For more information, visit www.hp.com, or www.comdisco.com.