Dell-Perot Systems Acquisition: Market and Customer Impacts

On September 21, Dell Computer Systems confirmed its plans to acquire Perot Systems for $3.9B in a deal expected to close in the first quarter of 2010. Dell, which derives nearly half of its $51B in annual revenue from customers outside of the US, is the second largest manufacturer of PCs worldwide and maintains a significant presence in the mobility, server and storage domains. Dell’s IT services business comprises less than 10% of its revenues and much of that is focused on installation, repair, and replace services for its hardware, rather than “traditional” outsourcing services. Perot Systems provides IT integration, IT outsourcing, and business process outsourcing services, primarily in the US. It has been a substantial player in the healthcare sector, from which it derives almost half of its $2.8B in annual revenue.

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