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Monday, 21 September 2009 19:38

Dell buys Perot Systems

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Valued at a mere $US3.9B, Ross Perot's Perot Systems Corp. falls to the significant charms of Michael Dell.

For some time, stories have circulated that Dell was keen to expand its operations out of simple box-moving into a more services-oriented environment where the pressures are reduced and the money more consistent. Immediately following today's takeover announcement, Dell Inc shares fell over 3%, while Perot Systems rose more than 65%, according to financial reports.

Clearly this deal will give Dell an opportunity to press its computing products into Perot's existing customer base.

"Today's announcement is the next step in formalizing a relationship that has flourished for some time," said Perot Chairman Ross Perot Jr. "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."

"The Perot acquisition, while not subject to a financing condition, will need government approvals and the satisfaction of other conditions, CEO Michael Dell said.  "Dell expects to close the deal in its November-January quarter."

This deal takes Dell into the same multi-discipline league as IBM and Hewlett-Packard; the merger awaits regulatory approval in a number of jurisdictions.

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David Heath

David Heath has had a long and varied career in the IT industry having worked as a Pre-sales Network Engineer (remember Novell NetWare?), General Manager of IT&T for the TV Shopping Network, as a Technical manager in the Biometrics industry, and as a Technical Trainer and Instructional Designer in the industrial control sector. In all aspects, security has been a driving focus. Throughout his career, David has sought to inform and educate people and has done that through his writings and in more formal educational environments.

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