HP Ready to Pay $300 Million for Synstar
Hewlett-Packard Co. announced that it will offer to acquire United Kingdom-based Synstar Plc for 100 pence ($1.84) per Synstar in a cash deal worth about 162.9 million pounds ($300 million). HP said the deal represented a 28% premium to Synstar's price of 78.25 pence ($1.44) at the close of trading on the London Stock Exchange Friday. Synstar's shares have jumped 27%, or 21 pence, to 99.25 pence ($1.83) in morning trading on news of the offer. HP tries to expand its United Kingdom-based services division with the acquisition of Synstar, which reorganized to focus mostly on managed services. Synstar, a technology consultant services firm, provides consulting to about 1,500 customers in Europe, and reported a pre-tax profit of 8.7 million pounds ($16 million) on sales of 223 million pounds ($410.3 million) in 2003. Merrill Lynch will make the offer on behalf of HP Global Investments BV, a subsidiary of HP. The U.S. computer giant posted sales of $73.06 billion in 2003. Shares of HP closed at $19.90 after trading on the New York Stock Exchange Friday.
AP, Associated Press