Dell to purchase Perot in $3.9 billion deal

Dell Inc, the PC maker has announced the acquisition of the technology services provider Perot Systems in a cash transaction valued at $3.9 billion.

The deal will help the company to diversify beyond its hardware business and to take on rivals Hewlett-Packard and IBM in the lucrative software solutions and services space. Further, it will provide an edge over IBM, Accenture and Indian technology services providers such as TCS, Infosys and Wipro as Perot is a specialist services provider.

The new combined entity will have total revenues of $7.7 billion, where Dell’s revenue totals to $5.1 billion and Perot's $2.8 billion.

Under the deal, Dell will acquire all outstanding common stock of Perot Systems for $30 a share in cash, which is a premium of about 67.5% on the script's Friday's closing price of $17.91 on the NYSE. According to sources, the deal is expected to close by December this year.

With strength of about 24,000, Perot provides IT services and business solutions to customers in healthcare, government and banking space. The deal had been in the works from 2007.