Tuesday, September 22, 2009

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Dell buys Perot Systems for $3.9 bn

Dell Inc said Monday it has agreed to buy the information technology services company Perot Systems Corp for about $3.9 billion as it looks to expand beyond the personal computer business.

Round Rock, Texas-based Dell said it will offer $30 per share in cash for Perot, which is based in Plano, Texas. This represents a 68 percent premium over Perot's closing share price Friday, and Perot shares shot up 66 percent in premarket trading Monday.

Adding options and restricted stock to Perot's 121 million outstanding common shares, Dell said the deal is worth $3.9 billion.

Dell said Perot, founded by former presidential candidate Ross Perot, will expand the company's IT services offerings for businesses and widen the pool of potential customers for its computers.

It expects to close the deal in the November-January quarter. Analysts have been expecting an acquisition from Dell, which hired IBM Corp's former mergers and acquisitions chief earlier this year and has raised almost $1 billion in debt since March.

The company's shares fell 79 cents, or 4.7 percent, to $15.90 in premarket trading, while Perot's stock shot up $11.79, or 66 percent, to $29.70.

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