Dell to Buy Perot Systems for $3.9 bn in Cash

Dell to Buy Perot Systems for $3.9 bn in Cash

By Reuters

  • 21 Sep 2009

Dell Inc said it had struck a deal to acquire computer services maker Perot Systems Corp in a cash transaction the personal computer maker valued at about $3.9 billion.

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Dell, which had indicated its intention to step up acquisitions, said it would launch a tender offer to acquire all of the outstanding Class A common stock of Perot Systems for $30 per share in cash.

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That represents a premium of about 67.5 percent from Friday's closing price of $17.91 on the New York Stock Exchange. Perot Systems shares jumped to $29.70 in premarket trade on Monday after the deal was announced.

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Dell, which said the acquisition will help it provide a broader range of services to its customers and open the door to the sale of Dell PCs to Perot's clients, expects the deal to add to its earnings in its fiscal year 2012.

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Perot Systems, founded in 1988 by Ross Perot, who twice ran for U.S. president, is expected to become Dell's services unit. It will be run by Peter Altabef, the current chief executive of Perot Systems.

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Ross Perot Jr., Perot Systems' chairman of the board, will be considered for appointment to the Dell board.