HP is to acquire Compaq Services Saudi Arabia (CSSA), eliminating in the process the last remaining vestige of Compaq; once one of the biggest IT names in the region.
The US giant has announced that it has signed agreements to acquire CSSA by purchasing the remaining shares formerly owned by the Alireza Group.
It will now be fully absorbed into HP and renamed ‘Hewlett-Packard Services Saudi Arabia’.
HP said the transaction — for which pricing has not been disclosed — was further evidence of its commitment to developing its business in the Kingdom, where it also has a local assembly plant.
As well as extending HP’s portfolio in Saudi Arabia, the company also said the acquisition would allow it to get closer to its customers.
Kevin Fah, integration manager for HP Middle East, told IT Weekly this will happen because “we will have consultativeselling, rather than just taking orders.”
He added that, because HP already had a shareholding in CSSA, existing customers should not feel any real differences following the change.
“Mentally, there will be a shortening of any internal communication lines for the customer, so actually we will get closer to them,” said Fah.
“Otherwise, the impact is not going to be huge, and we don’t want it to be huge for them… Saudi is definitely a key market and hence the investment there,” he went on to say.
Over the last few years, CSSA has continued to grow, both in size and reputation, according to Abdullah Mohaisen, general manager of HP Saudi Arabia.
It has customers in most sectors: public, oil and gas, telecommunications, manufacturing, energy and finance. HP will continue to work with the Alireza Group through Natcom, an HP enterprise reseller.
HP Middle East’s managing director Joseph Hanania said the strategic investment was made with a view to the company getting closer to its customers and partners. This would then allow it to be more agile and flexible in its offerings to them.
“We have continued to lead the way in investment in Saudi with the establishment of a local assembly plant — the first vendor to make such a significant investment,” said Hanania.
“With the enormous potential offered by the Saudi market, we will continue to develop our business in a proactive manner and look for opportunities to engage more fully with our customers both in Saudi Arabia and across the region,” he added.
A former hardware giant, Compaq and its global business and brand was taken over by HP in late 2001.
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