HP-Compaq merger could cost their Israeli branches 100 jobs, says local research firm

The merger's Israeli outfit could overtake IBM in PC sales to domestic market, predicts expert
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Some 100 people in Israel could lose their jobs as a result of the Hewlett Packard (NYSE:HWP) - Compaq Computer Corp. (NYSE:CPQ) merger, estimates research company Meta Group Israel.

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.