Dell Acquires Perot Systems for $3.9 Billion
Dell is acquiring Perot Systems in a deal valued at $3.9 billion, the companies said this morning. The deal, which has been approved by the boards of both companies, follows months of hinting from Dell about making an acquisition to boost its data center business. The offer works out to $30 a share, a 68 percent premium over Friday’s close for Perot Systems.
Dell (DELL) said the acquisition will allow it to offer a broader range of IT services, and a built-in market for its hardware among Perot Systems’ existing customers. Perot Systems has a strong footprint in the health care and government, which provide 48 percent and 25 percent of its revenues, with the remainder in the enterprise sector. Those two sectors are expected to see strong growth due to the Obama administration’s economic stimulus plan, which is expected to boost the adoption of electronic health records and upgrades of federal agencies’ IT infrastructure.
In a press release, the companies said the deal “provides some compelling opportunities for improved efficiency,” a phrase with implications for the workforces of the two companies.
“We consider Perot Systems to be a premium asset with great people that enhances our opportunities for immediate and long-term growth,” said Dell chairman and CEO Michael Dell. “This significantly expands Dell’s enterprise-solutions capabilities and makes Perot Systems’ strengths available to even more customers around the world. There will be efficiencies from combining the companies, but the acquisition makes such great sense because of the obvious ways our businesses complement each other.”
Perot Systems (PER) was founded by H. Ross Perot, who leveraged the wealth accumulated through his company’s success to mount two independent campaigns for president. The company reported 2008 revenue of $2.8 billion. The company has more than 23,000 associates located in the Americas, Europe, Middle East and Asia Pacific.
“Today’s announcement is the next step in formalizing a relationship that has flourished for some time,” said Perot Systems chairman Ross Perot Jr. “When my father founded Perot Systems he envisioned a global information-technology leader. The new, larger Dell builds on that promise and its own successes by taking Perot Systems’ expertise to more customers than ever.”
Wow. That is a game changer of sorts….
After HP/Compaq/DE lining up service and hardware…. took Dell long enough to decide to go this route….
To bad they missed coming up with a competitive mp3 player/phone with a developer network… but hey competing the old fashion way on service and support has gotta work… doesn’t it?
[...] coming from the government sector. As part of its stimulus spending, the Obama Administration is pouring money into healthcare to expedite the digitalization of medical records. With Perot in hand, Dell expects to tap into some of that largesse. (The companies already had a [...]
P. RoagainPosted September 21st, 2009
“Here we go again” are the words Ross Perot used whe he started Perot Systems after selling out EDS to General Motors to become a billionaire. The cycle is now complete. My condolences to all of the loyal employees who will be the casualties necessary to make the aquisition successful and Perot even richer. Hopefully, you’ll still be able to pay your mortgage/rent/car payments. Just check out the blogs about what happened to loyal EDS employees after the latest HP buyout.
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somerfieldPosted October 15th, 2009
can’t see much success to DELL
check out the case study (inside) of perotsystems working…