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NaviSite, Compaq Strengthen Ties

NaviSite , of Andover, Mass., and Compaq Computer , of Houston, have signed a new sales and equipment alliance.

Under the pact, Compaq will promote and sell NaviSite Web hosting services. In return, Compaq will be the preferred provider for NaviSite's storage and Intel-based servers.

Financial terms were not disclosed.

"The combination of Compaq's products and professional services, with NaviSite's managed hosting expertise should yield benefits for customers in need of a tightly integrated, high availability solution," said Ted Chamberlin, a Gartner senior analyst.

The news pumped NAVI stock up 0.1, or 43 percent, to 0.33 in early trading. In the last 52 weeks, the issue has ranged from 0.14 to 2.93. NaviSite is owned by CMGI , the Andover, Mass., Internet investor.

Earlier this month, CMGI posted a profit, thanks in large part to retiring debt owned by Compaq.

Shares of CPQ were off a fraction to 10.6. It has a 52 week range of 7.26 to 21.91.