September 22, 2009 by Matt Thomas
Yesterday PC manufacturer, Dell announced plans to considerably expand its operation by acquiring services provider, Perot Systems in a deal thought to be worth $3.9 billion dollars. The company has said in the past that they intend to step up acquisitions in the coming months, though it is unknown whether or not this is just the beginning. It is thought that the higher margins in the services sector are behind the decision to move into this area.
The acquisition talk has pushed shares in Perot to almost double in price from $17.91 to $29.68 and Dell has indicated that they now intend to launch a tender offer to buy up all the remaining ordinary shares.
In addition, a further $4 billion dollars has apparently been earmarked for integration costs between the two companies various overlapping arms, a process that Dell predicts will lead to savings of between 6 and 8 per cent.
The Perot family may not be fully frozen out of the new company with Chairman of the board, Ross Perot junior being considered for appointment to the Dell board.
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