News: IT outsourcing business could go in rush to sell non-core assets.
Dell is trying to offload Perot Systems as part of efforts to raise cash before the acquisition of EMC.
Perot Systems, which is part of Dell’s technology outsourcing business, is expected by the company to raise over $5 billion.
The IT giant has approached IT consultancy companies including Tata Consultancy Services, Atos, Genpact and CGI, according to the report in Re/code.
Dell acquired the company in 2009.
The move comes amidst plans by Dell to sell $10 billion of its non-core assets, including software and services divisions, to reduce the $49.5 billion debt burden it will assume after acquiring EMC.
In November, a report from Reuters suggested that Quest Software, SonicWall and AppAssure could be other potential assets that are sold off. They operate in IT management, email encryption and data security and back-up solutions respectively.
However, servers and other hardware assets will remain untouched.
As part of plans to pay for the $67 billion acquisition, which was announced in October, Dell is offering EMC investors a VMware tracking stock.
Reports emerged in November suggesting that factors including its use of a new type of stock share to help pay for the acquisition and issues surrounding EMC’s ownership of VMware could prevent the deal from qualifying for the tax treatment considered essential for the deal.
The Re/code report suggested that Dell insiders are concerned that the offer of a stock tracking VMware to EMC shareholders as part of the payment in the deal will attract scrutiny from the Internal Revenue Service.
However, according to Reuters sources close to Dell disputed the story, saying that the tracking stock would be treated in line with previous similar transactions.