Dell to buy Perot Systems for $3.9 billion

Dell to buy Perot Systems for $3.9 billion

Summary: Dell says it has agreed to buy the IT services company Perot Systems for about $3.9 billion as it looks to expand beyond the PC business.

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TOPICS: CXO, Dell
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Dell says it has agreed to buy the IT services company Perot Systems for about $3.9 billion as it looks to expand beyond the PC business.

The Round Rock, Texas-based Dell said Monday that it will offer $30 per share in cash for Perot, which is based in Plano, Texas, 200 miles away.

[Official Dell statement] [Perot Systems statement]

Dell said it expects to close the deal in the November-January quarter.

Dell said that 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.

Specifically, Dell said Perot would help it:

  • Provide a broader range of IT services and solutions and optimize how they’re delivered;
  • Extend the reach of Perot Systems’ 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."

Also: Dell: Perot Systems purchase an 'anchor' acquisition; More deals likely

Perot Systems is known for offering services for applications, technology, infrastructure, business processes and consulting. It has clients in health care, 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 last year, Dell and Perot had a combined $16 billion in enterprise-hardware and IT-services revenue, with about $8 billion 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 officer.

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

Topics: CXO, Dell

Andrew Nusca

About Andrew Nusca

Andrew Nusca is a former writer-editor for ZDNet and contributor to CNET. During his tenure, he was the editor of SmartPlanet, ZDNet's sister site about innovation.

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4 comments
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  • Dell to buy Perot Systems ...

    ... HEY! I'm Ross' long lost, illegitimate son, thrice removed, on my uncle's side!
    shenry1307
  • RE: Dell to buy Perot Systems for $3.9 billion

    If the shoe fits....wear it!
    EricVM
  • RE: Dell to buy Perot Systems for $3.9 billion

    Dell has a Board of Director base whose strength lies in finance. One thing can certainly be said, the merger must have got a great positive financial review from Dell's board what with ex CFo's, private equity partners, etc on the board.
    All the Perot system employees out there, heads up: change-in-control severance agreements were changed on September 20th.

    Tejus
    www.invesguard.com
    tejustrivedi
  • RE: Dell to buy Perot Systems for $3.9 billion

    As a former Perot IT employee I say this feels like a positive move. Dell will position themselves more competitively with HP, who bought Ross Perot's original IT services company, EDS in 2008. I doubt the overall vision of the IT services sector will be much different under Dell's control compared to Perot's.
    allanscott14