Dell buys Perot Systems for $3.9 billion

Dell has agreed to buy information technology services company Perot Systems for $3.9 billion, it has been announced. Round Rock, Texas-based Dell has offered $30 a share in cash for Perot, around 31 times its earnings in 2009. Plano, Texas-based Perot, which manages computer systems, data centers, software and websites for its clients, achieved sales of $2.78 billion last year.  The deal reflects DellÔÇÖs desire to move beyond the personal computer business and expand into services and more specifically, the healthcare industry. Around half PerotÔÇÖs current sales are from healthcare organizations such as hospitals and health insurance companies.  A shift to electronic records and an economic stimulus bill worth $20 billion to upgrade IT for the healthcare system is expected to significantly boost demand for IT services within the sector. Michael Dell, CEO of Dell, commented: ÔÇ£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 DellÔÇÖs enterprise-solutions capabilities and makes Perot SystemsÔÇÖ strengths available to even more customers around the world.  ÔÇ£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.ÔÇØ Ross Perot Jr., chairman of Perot Systems added: ÔÇ£This transaction represents a great opportunity for our company and our associates. TodayÔÇÖs announcement is the next step in formalizing a relationship that has flourished for some time.  ÔÇ£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 SystemsÔÇÖ expertise to more customers than ever.ÔÇØ  Dell has confirmed that Perot will become its services unit when the deal is completed, which is expected to be in the fourth quarter. It has said it expects to see its earnings boosted as a result of the sale from the fiscal year 2012. Perot was founded in 1988 by former US presidential candidate Ross Perot, who also founded EDS, the worldÔÇÖs second-largest computer services provider. In the last quarter, EDS helped Hewlett-Packard to increase its services revenue by 93 percent as sales at its PC division slumped. * ┬á┬á┬á┬á┬á┬á┬á*┬á┬á┬á┬á┬á┬á┬á *