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HP in another buy
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September 6, 2001: 5:28 p.m. ET
Printer and computer maker buys rest of Indigo for $629 million in stock
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NEW YORK (CNNfn) - Hewlett-Packard Co. agreed Thursday to acquire the rest of Indigo N.V., a commercial and industrial printing systems company, it doesn't already own for up to $882 million in stock and cash.
Terms of the deal call for Indigo shareholders to receive either $7.50 in HP common stock or $6 in HP stock plus a possible $253 million cash payment if Indigo achieves long-term revenue goals.
Indigo must achieve a total $1.6 billion in revenue over a three-year period after close of the deal, HP said.
The purchase is expected to add to HP's earnings per share in the first full year of operation.
Palo Alto, Calif.-based HP (HWP: down $0.51 to $17.70, Research, Estimates), which inked a $25 billion deal to buy Compaq Computer Corp. earlier this week, already owns 14.8 million Indigo common shares or 13.4 percent of outstanding shares.
The purchase is subject to a 95 percent minimum exchange condition, customary closing conditions and regulatory reviews, HP said.
Shares of Netherlands, Netherlands-based Indigo (INDG: up $0.78 to $6.30, Research, Estimates) surged 14 percent Thursday, closing at $6.30. 
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