21 September, 2009

Dell to buy Perot Systems for $3.9 bn in cash

Dell Inc said it had struck a deal to acquire computer services maker Perot Systems Corp in cash. The deal is expected to close in the quarter running from November to January -- Dell's fiscal fourth quarter.

To help things along Texas' Dell poached IBM Corp.'s  M&A chief David Johnson . That wasn't such an easy move as IBM did everything it could to stop its 27-year veteran's move, saying he was violating a non compete clause.

Dell's rival Hewlett-Packard expanded its own global services unit with the acquisition of EDS for $13.9 billion in May 2008. Over the last four quarters, Dell and Perot together had revenue of $16 billion from enterprise hardware and IT services, with $8 billion coming from enhanced services and support. Perot's contribution to that is relatively small: In 2008, the company reported total revenue of $2.78 billion.

We have to wait and watch how it adds value to DELL’s portfolio