HP to Buy German Firm for $426 Million
Hewlett-Packard Co. on Monday agreed to pay $426 million for ThyssenKrupp’s computer services unit to beef up sales in Germany.
ThyssenKrupp’s Triaton unit does work such as payroll management for companies including Aventis, the largest French drug maker.
Triaton has about $464 million in yearly sales, Palo Alto-based Hewlett-Packard said. ThyssenKrupp’s other units produce steel, elevators, auto parts and other products.
Hewlett-Packard aims to become Germany’s third-largest computer-related services seller within three years, from fourth place now, said Joerg Menno Harms, who heads the company’s German division. In Europe, Hewlett-Packard aims to jump to No. 2 from No. 3. Competitors include Cap Gemini, Deutsche Telekom’s T-Systems division and IBM Corp.
By acquiring Triaton, Harms said, Hewlett-Packard can meet its goal of strengthening its information technology services position, especially in the German market, and adding new skills.
Hewlett-Packard employs about 7,500 people in Germany and generated about $6.4 billion in sales in the country in 2002. Triaton employs 2,200 people, and more than half of its customers are unrelated to ThyssenKrupp. Triaton has subsidiaries in Singapore, China and Brazil.
On Thursday, Hewlett-Packard said second-quarter sales may rise to as much as $19.6 billion, beating analyst forecasts.
Shares of Hewlett-Packard declined 22 cents to $22.91 on the New York Stock Exchange. The stock has dropped less than 1% this year after climbing 32% in 2003.
