Digital, Compaq split up
29 Apr 1999
The global merger of Digital and Compaq took place last year. Since Compaq had taken over Digital, there had been doubts about the future of Digital's products, especially its Alpha processor.
In India people have been asking whether the two companies would merge -- especially considering that Digital''s man in charge in the country, Som Mittal, was slated to take over as managing director of the merged entity. But now the two have found and gone their separate ways.
Digital Equipment India Ltd has sold its hardware business to Compaq, and will now focus on software and services. The company has received Rs. 83 crore for the unit and Rs. 5 crore as a non-compete fee, adding to its reserves of Rs. 60 crore. Software and services have been one of Digital India's strengths. They have outperformed its products business.
All the 530-plus employees of DEIL's products and services division will be absorbed by Compaq. The remaining 300-odd employees will continue to serve the software and services division.
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