Compaq Computer Corp finally revealed details of its agreement with Silicon Graphics Inc yesterday, saying that it would seal the technology exchange and the joint technical development agreement with an investment of $135m in new convertible preferred stock exercisable at $50 a share, representing a 13% stake. It is also putting up $50m which Silicon Graphics will use to fund research and development. The agreement covers Silicon Graphics’ expertise in the integration of advanced RISC and graphics technologies, including the Iris Graphics Library. Compaq will provide expertise in such areas as the EISA bus, VLSI design and high-volume manufacturing. The equity investment and funds received will speed Silicon Graphics’ ability to create and use new technologies in future products – which can be made and sold by both the partners.
