Dr. Dobb's | HP Plans To Buy Synstar

HP Plans To Buy Synstar

August 09, 2004
URL:http://www.drdobbs.com/hp-plans-to-buy-synstar/30000190

Hewlett-Packard Co. on Monday said it planned to buy IT services firm Synstar plc for $297 million in cash, a move expected to boost HP's sales in the United Kingdom and Europe.

Under the deal, the Palo Alto, Calif., computer maker is offering Synstar shareholders $1.84 a share, which is about a 28 percent premium over the stock's closing price of $1.44 on Friday. Synstar is headquartered in England.

The proposed takeover would add 1,500 service customers to HP in the United Kingdom and Europe. "HP believes that combining the two businesses will result in an organization better able to increase sales of IT services to its combined customer base and to access a greater share of the European multi-vendor market," HP spokesman Greg Caldwell said in response to an email query.

Synstar's board has recommended that shareholders accept the HP offer, Caldwell said. He declined comment on reports that HP could face competition for the acquisition, saying it would be "inappropriate to speculate."