Dell Expands Through an Acquisition

Dell Expands Through an Acquisition

Yesterday, the PC manufacturer Dell announced that it will buy for 3,9 billion dollars (30 dollars a share) the company Perot Systems therefore expanding itself on the IT services market.

Seen as a strategic move to increase its competitive advantage in front of rivals IBM and HP, the acquisition has the porpoise to transform Perot Systems into Dell’s services division which will be led by the present Perot CEO, Peter Altabef. Moreover the Dell board proposed that after the acquisition the president of Perot’s board, Ross Perot Jr, become a member in Dell’s board of directors.

Michael Dell, CEO Dell, stated that the take-over will assure a fast, long term growth which will be a success mainly because of the complementary nature of the two businesses.

Even though the acquisition will have to respect many legal conditions and will have to be approved by the USA government, a finalization is expected in January 2010.