Dell Set to Buy Perot Systems for $3.9 Million

Dell said that Perot, known for offering services for applications, technology, infrastructure, business processes and consulting, will expand the company’s IT services offerings thus broadening the amount of potential customers for its computers. Perot was founded by former presidential candidate Ross Perot.

Michael Dell, Chairman of the Board and Chief Executive Officer, Technology Dell: "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."

Talk of the impending sales have Technology stocks edged down early Monday as shares of Dell Inc. fell sharply on news that the computing giant was buying Perot Systems.

In an official statement from Dell:

The acquisition will result in a compelling combination of two iconic information-technology brands. The expanded Dell will be even better positioned for immediate and long-term growth and efficiency driven by:

*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.

This is not the first time Dell and Perot have worked together. Most recently they teamed in April to get in on the ground floor of electronic health records. This is a field that is expected to have substantial growth in the near future as patients' medical records are digitized by doctors and hospitals.

"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."

Dell said Monday that it will offer $30 per share in cash to acquire Perot. When the deal is complete, Perot Systems will become Dell's services unit and will be headed by Peter Altabef, current Perot Systems CEO. Ross Perot Jr. is expected to be considered for a spot on Dell's board of directors.

Written by: Cheryl Phillips
Providence, RI
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