Looking to compete more effectively with IBM and HP in the IT services arena, Dell has acquired Perot Systems for $3,9-billion.
In a statement released yesterday, Dell says the acquisition is a "compelling combination of two iconic IT brands". Over the past four quarters, it adds, Dell and Perot Systems had a combined $16-billion in enterprise hardware and IT-services revenue, with about $8-billion from enhanced services and support.
Once the acquisition is complete, Perot Systems will become Dell’s services unit and be led by current Perot CEO, Peter Altabef. At the same time, Dell directors are expected to consider Ross Perot Jr, Perot's chairman, for appointment to the Dell board.
“We consider Perot Systems to be a premium asset with great people that enhances our opportunities for immediate and long-term growth," says 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 Jr comments: “This transaction represents a great opportunity for our company and our associates. Today’s announcement is the next step in formalising a relationship that has flourished for some time. 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.”