Dell ‘All in' on IT Services with $3.9B Acquisition

Computer maker agrees to buy IT services provider Perot Systems in a deal that echoes similar moves by HP and IBM.

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Posted on Sep 21, 2009

Computer hardware juggernaut Dell Inc. announced today that it will spend $3.9 billion in existing cash to acquire Perot Systems, Inc., a provider of IT services to commercial and government clients.

Under the terms of the agreement, Dell will commence a tender offer to garner all outstanding shares of Perot Systems for $30 each. In morning trading today, Perot’s shares shot up more than $11, to almost $30. The deal must clear regulatory hurdles; Dell officials said they expect to complete the transaction in the fourth quarter.

To date, Dell has dabbled in the services market, but the Perot deal is the bedrock of a more expansive push, officials said.

“We believe this is a critical acquisition in our strategy to transform the company,” said Brian T. Gladden, Dell’s CFO, on a conference call with analysts today to discuss the deal. “IT services will be a big part of our strategy, and we were very focused on getting a great anchor acquisition, which we believe we did.”

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