Compaq to Supply PCs, Services to BofA

Compaq Computer Corp. won a three-year contract to supply PCs, server computers and services to Bank of America Corp.

Compaq, based in Houston, will provide 120,000 corporate PCs, 4,000 workstations, 6,000 servers and related services to the Charlotte, N.C.-based bank. The value of the agreement wasn’t disclosed.

The PC maker is trying to boost sales and profit by selling more services, which are more lucrative than PCs, a market in which prices and demand have dropped this year.

Compaq shares rose 25 cents to close at $13.85 and Bank of America shares fell 34 cents to $62.01, both on the NYSE.