SEP 21, 2009 5:05am ET

Related Links

The Fall of Intuition-Based Decisions and Rise of Little Data
September 2, 2014
Why the "Three Vs" May not Help your Big Data Initiative
September 2, 2014
Cloud, Big Data, Analytics and Internet of Things to Become Pillars of Smart Buildings
September 2, 2014

Web Seminars

Why Data Virtualization Can Save the Data Warehouse
September 17, 2014
Essential Guide to Using Data Virtualization for Big Data Analytics
September 24, 2014

Dell to Acquire Perot Systems


September 21, 2009 -- Computer maker Dell has announced its intention to acquire Perot Systems Corp. at an agreed price of $30 per share or $3.9 billion. The deal brings Dell a large provider of IT services primarily focused on health care and government and a platform for leveraging future product acquisitions.

The two companies already have an extensive services agreement and in a conference call said Perot CEO Peter Altabef will head a new services arm based on Dell hardware and services. Dell CFO Brian Gladden called the deal an “anchor acquisition” and said growth is the “primary motivation” for the merger.

An immediate opportunity for the companies is in leveraging Dell commodity hardware for the creation of captive or hosted data centers and virtualization services. 

Dell also commented that future plans could continue the diversification around servers and storage. CEO Michael Dell pointed to Internet SCSI storage provider EqualLogic, which Dell acquired in 2008, as a company that could be leveraged through an owned services arm and said other deals could follow. Dell said the two Texas-based businesses could grow faster when combined. 

Perot Systems’ two largest verticals are among those with the greatest industry growth. Health care and government already account for more than 70 percent of Perot revenues and provide a ripe market for cross-selling Dell products.
Large hardware providers have looked to leverage services to match the offerings of newly integrated vendors, as evidenced by HP’s acquisition of EDS. IBM, with its massive services arm is expected to test the market for integrated software services through its acquisition of predictive analytics provider SPSS.

Perot Systems reported $2.8 billion in 2008 revenue and has more than 23,000 employees globally.

Get access to this article and thousands more...

All Information Management articles are archived after 7 days. REGISTER NOW for unlimited access to all recently archived articles, as well as thousands of searchable stories. Registered Members also gain access to:

  • Full access to including all searchable archived content
  • Exclusive E-Newsletters delivering the latest headlines to your inbox
  • Access to White Papers, Web Seminars, and Blog Discussions
  • Discounts to upcoming conferences & events
  • Uninterrupted access to all sponsored content, and MORE!

Already Registered?

Filed under:


Comments (0)

Be the first to comment on this post using the section below.

Add Your Comments:
You must be registered to post a comment.
Not Registered?
You must be registered to post a comment. Click here to register.
Already registered? Log in here
Please note you must now log in with your email address and password.
Login  |  My Account  |  White Papers  |  Web Seminars  |  Events |  Newsletters |  eBooks
Please note you must now log in with your email address and password.