Computer Business Review

Dell to acquire Perot Systems for $3.9bn

by Steve Evans| 21 September 2009

PC maker moves into IT services space

PC maker Dell is to acquire Perot Systems for $3.9bn (£2.4bn). The move will boost Dell’s IT services operations.

Plano, Texas-based Perot Systems, founded by former US presidential candidate Ross Perot, will now become Dell’s services unit and will be headed by the firm’s CEO Peter Altabef.

Dell will acquire the company in an all-cash deal, valued at $30 per share, which represents a 68% premium on Perot’s share price when markets closed on Friday.

Dell hopes that the deal will increase the pool of potential customers for its PC hardware business, which has suffered as a result of the recession. Dell’s latest quarterly results revealed a 22% slump in revenue to $12.76bn and profits of $472m, down 23%.

Rival PC maker HP moved into the services field with its acquisition of EDS for $13.9bn in May 2008 and Dell had been tipped to follow HP by widening its product portfolio. Earlier this year the company hired David Jones, who was IBM’s mergers and acquisitions chief.

“This significantly expands Dell’s enterprise-solutions capabilities and makes Perot Systems’ strengths available to even more customers around the world. There will be efficiencies from combining the companies, but the acquisition makes such great sense because of the obvious ways our businesses complement each other,” said Michael Dell, Dell’s chairman and CEO.

Ross Perot Jr., chairman of Perot Systems, said: “This transaction represents a great opportunity for our company and our associates. Today’s announcement is the next step in formalising a relationship that has flourished for some time. When my father founded Perot Systems he envisioned a global information-technology leader. The new, larger Dell builds on that promise and its own successes by taking Perot Systems’ expertise to more customers than ever.”

Dell expects the deal to close in the November-January quarter and it should begin to positively impact Dell’s earnings in FY2012.

Comments
Post a comment

Comments may be moderated for spam, obscenities or defamation.

Join our network

777 people like this.
2086 people follow this.

Intelligence

Suppliers Directory

  • Capscan

    Capscan is a leading supplier of international address management solutions and data integrity services. Capscan has more than 1800 customers...

  • SDL Tridion - Web Content Management Solutions

    SDL Tridion is a global leader in Web Content Management (WCM) solutions.

  • Neverfail Overview

    The Neverfail Group is dedicated to creating a world where business applications are continuously available. High Availability, Disaster Recovery...

  • Qualys - IT security risk and compliance solutions

    Qualys is the leading provider of on demand IT security risk and compliance solutions - delivered as a service. Qualys solutions enable...


See more
Privcy Policy

We have updated our privacy policy. In the latest update it explains what cookies are and how we use them on our site. To learn more about cookies and their benefits, please view our privacy policy. Please be aware that parts of this site will not function correctly if you disable cookies. By continuing to use this site, you consent to our use of cookies in accordance with our privacy policy unless you have disabled them.