HP Israel subsidiary sees $800 million in sales

TEL AVIV,
May 14 2002
Reuters

The Israeli subsidiary of the newly merged Hewlett-Packard Co and Compaq Computer Corp estimates it will have $800 million in sales in its first year, the head of the unit said on Tuesday.

"The latest mergers and acquisitions position HP Israel as the leading local computer company," said Udi Graff, head of HP Israel, which combines HP's and Compaq's Israeli subsidiaries.

HP Israel also includes Indigo NV, the Israeli maker of digital printing systems recently acquired by Hewlett-Packard.

Graff said the $800 million in sales includes $450 million in domestic sales and $350 million in exports of digital printing systems.

HP Israel has 1,200 workers and has been divided into four business units -- HP Services, Personal Systems Group, Imaging and Printing Group and Enterprise Systems Group.

Graff said the integration process should be completed by the end of the summer and that he expected only a very small number of layoffs as a result of the merger.

HP earlier this month completed its $18.7 billion acquisition of Houston-based Compaq, the largest acquisition in technology industry history.