Dell to buy Perot Systems for $3.9 billion
Computer maker Dell has announced that it will be purchasing Perot Systems, an information technology services company, for $3.9 billion in cash, or about $30 per share.
The deal was approved by the board of directors for both companies yesterday, and the deal is expected to be finalized between November and January.
Perot Systems was founded by former Presidential hopeful H. Ross Perot in 1988 along with eight associates. The company has since grown to be a member of the Fortune 1000, and employees over 23,000 associates, and offices in eight countries around the world. Revenues for the company in 2008 were estimated to be $2.8 billion.
Michael Dell, Chairman of the Board and Chief Executive Officer, Dell, had this to say about why the deal makes sense for both companies:
We consider Perot Systems to be a premium asset with great people that enhances our opportunities for immediate and long-term growth. 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.
In a statement from Perot Systems, the company pointed out the three key aspects of what this deal means for both companies.
- Providing a broader range of IT services and solutions and optimizing how they’re delivered;
- Extending the reach of Perot Systems’ capabilities, including in the most dynamic customer segments, around the world, and,
- Supplying leading Dell computer systems to even more Perot Systems customers.
Ross Perot, Jr., the current chairmen of the board for Perot Systems, is expected to be offered a seat on the Dell board at the conclusion of the deal.
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