Compaq Computer pays US$9 billion for Digital Equipment Corporation in the largest high-tech acquisition.
Digital Equipment Corporation (DEC ), using the trademark Digital, was a major American company in the computer industry from the 1960s to the 1990s. The company was co-founded by Ken Olsen and Harlan Anderson in 1957. Olsen was president until forced to resign in 1992, after the company had gone into precipitous decline.
Although the company produced many different product lines over its history, it is best known for the work in the minicomputer market starting in the mid-1960s. The company produced a series of machines known as the PDP line, with the PDP-8 and PDP-11 being among the most successful minis in history. Their success was only surpassed by another DEC product, the late-1970s VAX "supermini" systems that were designed to replace the PDP-11. Although a number of competitors had successfully competed with Digital through the 1970s, the VAX cemented the company's place as a leading vendor in the computer space.
As microcomputers improved in the late 1980s, especially with the introduction of RISC-based workstation machines, the performance niche of the minicomputer was rapidly eroded. By the early 1990s, the company was in turmoil as their mini sales collapsed and their attempts to address this by entering the high-end market with machines like the VAX 9000 were market failures. After several attempts to enter the workstation and file server market, the DEC Alpha product line began to make successful inroads in the mid-1990s, but was too late to save the company.
DEC was acquired in June 1998 by Compaq in what was at that time the largest merger in the history of the computer industry. During the purchase, some parts of DEC were sold to other companies; the compiler business and the Hudson, Massachusetts facility, were sold to Intel. At the time, Compaq was focused on the enterprise market and had recently purchased several other large vendors. DEC was a major player overseas where Compaq had less presence. However, Compaq had little idea what to do with its acquisitions, and soon found itself in financial difficulty of its own. The company subsequently merged with Hewlett-Packard (HP) in May 2002.
As of 2012, decades-old hardware (including PDP-11, VAX, and AlphaServer) is being emulated to allow legacy software to run on modern hardware; funding for this is planned to last at least until 2030.
Compaq Computer Corporation (sometimes abbreviated to CQ prior to a 2007 rebranding) was an American information technology company founded in 1982 that developed, sold, and supported computers and related products and services. Compaq produced some of the first IBM PC compatible computers, being the second company after Columbia Data Products to legally reverse engineer the IBM Personal Computer. It rose to become the largest supplier of PC systems during the 1990s before being overtaken by HP in 2001. Struggling to keep up in the price wars against Dell, as well as with a risky acquisition of DEC, Compaq was acquired for US$25 billion by HP in 2002. The Compaq brand remained in use by HP for lower-end systems until 2013 when it was discontinued. The brand is licensed to third parties for use on electronics in Brazil and India.
The company was formed by Rod Canion, Jim Harris, and Bill Murto, all former Texas Instruments senior managers. Murto (SVP of sales) departed Compaq in 1987, while Canion (president and CEO) and Harris (SVP of engineering) left under a shakeup in 1991, which saw Eckhard Pfeiffer appointed president and CEO. Pfeiffer served through the 1990s. Ben Rosen provided the venture capital financing for the fledgling company and served as chairman of the board for 17 years from 1983 until September 28, 2000, when he retired and was succeeded by Michael Capellas, who served as the last chairman and CEO until its merger with HP.Prior to its takeover the company was headquartered in northwest unincorporated Harris County, Texas, that now continues as HP's largest United States facility.