HP Buys Printing Company Indigo

Hewlett-Packard Co., which earlier this week made a bid for Compaq Computer Corp., said it would pay as much as $882 million in stock and cash to buy industrial printing systems firm Indigo.

HP already had a minority stake in Indigo, which makes high-speed color print technology, an area HP expects will take off in the commercial printing market.

The deal would add to HP’s earnings per share in the first full year of operation, HP said.

HP said it owned about 13.4% of Maastricht, Netherlands-based Indigo and would pay $629 million in stock for the remainder, with an additional cash payment of as much as $253 million contingent upon Indigo hitting revenue targets.

News of the deal sent shares of Indigo up 69 cents to $6.99 in extended trading after closing up 78 cents at $6.30 on Nasdaq. HP closed off 51 cents at $17.70 on the NYSE.