The $9.6 billion merger of Compaq and Digital will make the enlarged company by far the biggest computer vendor in Ireland, with sales of over £100 million in the Republic, according to statistics contained in a new survey.

According to the latest edition of Irish Computer magazine, IBM was the largest computer vendor in the Republic in 1997, with sales up 9 per cent at £66.7 million. But Digital came in a close second, with sales climbing 16 per cent to £61.8 million. Further down the top 10 list is Compaq, which says it doubled its sales to £43 million.

But combining the sales of Compaq and Digital places the new company with £104.8 million - far ahead of all its rivals, including IBM.

According to the magazine, Dell came in third last year, with sales of £58.5 million. The company, which recently announced an investment of £180 million which will create 3,000 new jobs, grew revenue in Ireland by 51 per cent, according to the survey. A similar increase in 1998 would make Dell an even more powerful player in the Republic by the end of the year.

Bull was fourth with revenue of £57 million and Hewlett-Packard fifth with £48.5 million.

The magazine - which went to print before the merger - pointed to the 99 per cent growth in Compaq's sales last year and predicted that it would make the top three in 1998. In the light of the merger, if Compaq were to grow at even half it current rate, and Digital were to perform as well as last year, the new company would have sales of close to £140 million.

This would put its revenue head and shoulder above its rivals. IBM, growing this year at the 1997 rate of 9 per cent would have sales of £72.7 million, while Dell, growing at 51 per cent, would reach sales of £88.3 million

Microsoft, the ninth biggest vendor according to the survey, saw sales rise 26 per cent to £23.5 million. Company executives have said some of the increase is due to users registering and paying for their previously unauthorised copies of Microsoft programmes.

Compaq said yesterday it was still formulating its plans for Digital, and will take up to four months to announce an integration strategy. But Mr Eckhard Pfeiffer, Compaq's president and chief executive, said Digital had some distance to go before reaching his company's level of efficiency and profitability.

"A lot needs to happen at Digital, no question. Compaq has been a leader in efficiency and that will have to happen at Digital," Mr Pfeiffer said.

Both companies have a strong presence in Ireland; Digital employs 1,100 people in Dublin and Galway, while Compaq, which sources some £350 million of computer parts here each year, has 250 staff in Dublin.