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Dell buys Perot Systems for $3.9 billion
The move comes as Dell loses ground to rivals like HP -- the top dog in PC sales. Dell reported a profit decline of 23% to $472 million ($.24 per share), and 22% less sales during the quarter ending July. The company is heavily reliant on enterprise PC sales -- which slipped by 32% year-over-year in the period. Dell hopes to expand beyond the PC business, which will allow it to compete more aggressively.
The acquisition will bring it more than 1,000 new customers in government, manufacturing, health care, and financial services. Some 48% of Perot Systems' revenue comes from the health care industry, and about 25% from government, which includes the US Department of Homeland Security and the military.
User Comments: 3
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Worth the money at half the price.
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At The Transition Companies, we believe that acquiring companies, especially ones that have successfully cornered a specific audience, is often the most efficient and effective way to grow a company. Dell is looking to not only grow organically but to shift their current strategy and begin focusing on the services sector of industry. Through acquisitions like the recent Perot Systems deal, Dell will catapult themselves into the computer services sector allowing them to quickly compete with HP and IBM. “We can definitely expect to see continued acquisitions from Dell", says Mike Ryan of The Transition Companies, “as they cast their net deeper into the computer services sector allowing them to rapidly expand their customer base
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looking at case study it seems to be cultural change for dell..
http://blog.rajesh.co.in/search/label/Case%20Study
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