Compaq Israel has 450 employees. HP Israel is thought to have 200.
HP is acquiring Compaq for $25 billion in stock. The merger will create a company with annual revenues of almost $90 billion.
Meta Group expects the merger to give HP-Compaq the edge in the Israeli PC market, over IBM Corporation (NYSE:IBM).
Gideon Lopez, research director of the Israeli branch of IDC, a leading provider of technology intelligence and market data, predicts the merger will create the biggest computerization company in Israel, with annual sales exceeding $550 million (based on 2000 data).
HP-Compaq will also find itself in competition with Tel Aviv-based Ness Technologies and Matrix (formerly ForSoft) of the Formula Systems (Nasdaq:FORTY) group.