Compaq to buy Zip2

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Compaq Computer Corp., Houston, agreed Feb. 16 to buy Zip2 Corp., a Mountain View, Calif.-based company that creates customized Web sites. Zip2 will become a division of AltaVista Co., a subsidiary of Compaq. Zip2's board of directors approved the transaction, which is a cash purchase for all of Zip2's outstanding shares. While financial details weren't disclosed, Rod Schrock, president-CEO of AltaVista, said it paid more for Zip2 than it did for e-commerce site, which it acquired recently for $220 million. Zip2's clients include Classified Ventures, The New York Times Co. and Knight-Ridder.

Copyright February 1999, Crain Communications Inc.

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