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Dell To Acquire Perot Systems For $3.9 Billion
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by Yuliya Talmazan | September 21, 2009 at 12:05 pm
131 views | 10 Recommendations | 1 comment
In an acquisition expected to widen the business sphere of Dell, the company is set to buy Perot Systems for $3.9 billion dollars. Dell makes PCs, but by buying Perot, a new market niche is opening for Dell. Perot Systems is an IT service company, which is a drastic shift for Dell, which stayed loyal to its hardware business until now. In the times of the global financial crisis, it is not often that we get to see acquisitions, let alone acquisitions with the purpose of expansion. But, as Dell's competitors -- HP and IBM-- are looking for more ways to expand, Dell had to make this step, according to some analysts.
"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."
"This significantly expands Dell's enterprise-solutions capabilities and makes Perot Systems' strengths available to even more customers around the world," said Dell CEO Michael Dell. "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."
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at 15:03 on September 23rd, 2009
At The Transition Companies, we believe that acquiring companies, especially ones that have successfully cornered a specific audience, is often the most efficient and effective way to grow a company. Dell is looking to not only grow organically but to shift their current strategy and begin focusing on the services sector of industry. Through acquisitions like the recent Perot Systems deal, Dell will catapult themselves into the computer services sector allowing them to quickly compete with HP and IBM. “We can definitely expect to see continued acquisitions from Dell", says Mike Ryan of The Transition Companies, “as they cast their net deeper into the computer services sector allowing them to rapidly expand their customer base