Compaq Computer Corp. said Monday it has agreed to buy Shopping.com for $220 million in cash in a strategic move for its AltaVista Internet guide to become a leading online transaction site.
The world's second-largest computer company (CPQ) said it will acquire all shares outstanding of California-based online retailer Shopping.com for $19 a share.
Shares of Compaq rose 1 1/4 to 46 5/8 Monday on the news. Shopping.com trades over-the-counter under the symbol IBUY.
Compaq said the Shopping.com site will enhance AltaVista, a search engine that links to shopping sites run by Compaq partners.
"The Internet is fast becoming a transaction medium in addition to a content medium. Our intent is to make AltaVista the leading guide for both information and e-commerce on the Internet," said Rod Schrock, Compaq's senior vice president and manager of computer products, in a statement.
Compaq said that during the holiday season, AltaVista drove several million visitors to the AltaVista "holiday shopping experience" and its e-commerce partners. With the addition of Shopping.com, AltaVista will be able to directly complete e-commerce transactions, the company said.
Written By Lisa J Ulmer