Dell To Get Into Consulting Through Acquisition of Perot Systems
Henry Ross Perot started a company called Electronic Data Systems in 1962 and then sold it to General Motors. EDS was responsible for General Motor’s IT services. Then EDS was bought out by Hewlett Packard for $13.9 billion in May 2008. Another one of Ross Perot’s company has been acquired today called Perot Systems. Perot Systems was founded in 1988 and has been sold to Dell Inc. for $3.9 billion.
All of the biggest PC manufacturing companies has a strong branch of consulting arms. IBM Global Services makes about $58.9 billion. Between HP and EDS’ collective business services, they made about $38 billion as of 2007. And Dell’s Perot Systems made about $2.8 billion in 2008 revenues.
Based on how many shares Perot Systems has on the market, Dell will be buying them each at $30 per share. This is a 67% premium based on Perot Systems’ stock price on Friday of $17.91. The deal is expected to close during Q4 of Dell’s fiscal year. Perot Systems will continue to operate in Plano, Texas. Dell itself is based in Round Rock, Texas which is less than 250 miles away.This article was written by Amit Chowdhry. You can follow me at @amitchowdhry or on Google+ at +AmitChowdhry