Dell to buy IT services company Perot Systems

Summary:Dell says the $3.9bn deal will expand the company's IT services offerings and widen the pool of potential customers for its computers

Dell has announced that it will buy IT services company Perot Systems for about $3.9bn, as it looks to expand beyond the PC business.

Dell said on Monday that it will offer $30 (£18.50) per share in cash for Perot, which is based in Plano, Texas, 200 miles away. The company said it expects to close the deal in the November-January quarter.

Dell said Perot, founded by former presidential candidate Ross Perot, will expand the company's IT services offerings and widen the pool of potential customers for its computers.

Dell said Perot would help it provide a broader range of IT services and solutions and optimise how they are delivered. It also expects the acquisition to extend the reach of Perot Systems's capabilities around the world and supply leading Dell computer systems to even more Perot Systems customers.

Dell said the two companies share "complementary" characteristics, including "relationship-based business cultures".

Perot Systems is known for offering services for applications, technology, infrastructure, business processes and consulting. It has clients in healthcare, government and other commercial segments, from SMEs to large global institutions; it also has a large and growing base of customers and service-delivery capabilities in North America; Europe, the Middle East and Africa; and Asia.

In the past year, Dell and Perot had a combined $16bn in enterprise-hardware and IT-services revenue, with about $8bn from enhanced services and support, the companies said.

Once the acquisition is complete, Perot will become Dell's services unit and be led from Plano by Peter Altabef, the current Perot Systems chief executive.

Dell directors are expected to consider Ross Perot Jr, Perot Systems's chairman of the board, for appointment to the Dell board.

Topics: Networking

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Andrew Nusca is a former writer-editor for ZDNet and contributor to CNET. He is also the former editor of SmartPlanet, ZDNet's sister site about innovation. He writes about business, technology and design now but used to cover finance, fashion and culture. He was an intern at Money, Men's Vogue, Popular Mechanics and the New York Daily Ne... Full Bio

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