Compaq had always dreamt of being one of the top three computer makers in the world. But its dream remained far removed from reality. Its acquisition of Digital was a shot in the arm, which gave it the necessary momentum and push to join the elite group of one-stop suppliers previously limited to IBM and Hewlett Packard. But the goal is as elusive as ever.

The adage perseverance pays seems to be true in the case of Compaq, which finally ended up tying the knot to Digital Equipment Corporation at the end of a long courtship of almost three years. The largest ever deal in the computer industry worldwide signaled a major shift in the world of computing and computers. The deal overnight transformed Compaq from a PC maker to a broad based solutions provider, who could offer all that a company or an individual would need in the world of computers. The deal created a number three computer company in the world armed with a powerful global network of services. The new Compaq was a boon to some and a bane to many. The deal was a new lease of life for the dying Digital and a launch pad for Compaq.

The acquisition of Digital Equipment Corporation by Compaq Corp was a deal of historic importance in the computer industry. The $9.6bn deal that consummated in June 1998 was the largest ever in the computer industry after the acquisition of NCR by AT&T worth around $7.8 bn. That merger had proved to be a disaster with AT&T selling it off after suffering billions losses; the destiny of this Compaq-Digital merger was in question right from the beginning owing to the difficulties in successful integration.

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