Dell Acquires Perot Systems
CNNMoney.com reports that Dell will acquire Perot Systems for $3.9 billion in cash so that Dell can now partake in the IT services industry.
CNN Money states, “The move marks a strategic shift for Dell, which has stuck with its personal computer and server sales even as its rivals like Hewlett-Packard (HP) and IBM (IBM, Fortune 500) continue to diversify amid slumping hardware sales.” “We’ve seen this coming, but I’m surprised it took as long as it did,” said Gartner analyst John Enck. “This path is a necessary ingredient to future success, which being a hardware-only provider would have limited.”
The deal is expected to occur in Dell’s 4th quarter, which would be in January 2010. Dell, a leader in the PC hardware business, has been hesitant in expanding its presence in the IT industry due to the 2008 recession but this new report will now have Dell’s competitors thinking.
Perot offers a range of IT services from government to health care as well as consulting and some software ventures.