Dell may turn to takeovers for growth

Organic diet not sufficient?

Organic diet not sufficient?

Dell has admitted organic growth may not be enough to make it a company with revenues that could match an IBM, Fujitsu or a combined HP-Compaq. Instead it is considering acquisitions, a route it has shunned in the past. Kevin Rollins, Dell president and COO, said in an interview: "There are not many $30bn companies that have grown to $60bn, $70bn, $80bn who have not done it with acquisitions, so we concluded this is going to have to be part of what we are doing." His comments are reported in today's FT. The leading PC maker is in particular thought to be eyeing the lucrative services sector and ways of exploiting the demand for storage and networking equipment. The past five years have seen Dell linked with a number of high-profile industry players, including storage specialist EMC and services to mainframes vendor Unisys.