Dell to Buy Perot Systems

Dell, the Texas based computer systems giant, has reached an agreement to buy Perot Systems for nearly $4 billion. Both companies had the purchase approved by its board of directors. By purchasing Perot Systems, Dell hopes to better compete with other technological giants such as IBM and Hewlett-Packard.

“We consider Perot Systems to be a premium asset with great people that enhances our opportunities for immediate and long-term growth,” said Michael Dell, the CEO of Dell. “This significantly expands Dell’s enterprise-solutions capabilities and makes Perot Systems’ strengths available to even more customers around the world.”

Perot Systems was founded in 1988 by H. Ross Perot Sr. Perot, who is mostly known for being a former presidential candidate, is the company’s chairman emeritus. His son, Ross Perot Jr., is Perot System’s board chairman.

“This transaction represents a great opportunity for our company and our associates,” said Perot Jr. “Today’s announcement is the next step in formalizing a relationship that has flourished for some time.”

In the agreement, Dell agreed to purchase Perot Systems for $30 per share. For Dell to continue to be a lucrative company, industry experts believe that Dell will need to get a global reach that goes beyond the sale of personal computers.

Michael Dell (Image: Flickr)