Dell to acquire Perot Systems for $3.9 billion

Personal computer major Dell Inc. has decided to acquire IT-service and business solutions provider Perot Systems Corp. in a $3.9 billion cash deal, which will help Dell expand beyond its PC business.

Dell will commence a tender offer to acquire all the outstanding Class A common stock of Perot for $30 per share, a 68 per cent premium on the $17.91 closing price of Perot shares on Friday.

The deal, seen as a response to HP's acquisition of Electronic Data Systems earlier this year, will enable Dell to widen its service offerings to take on its rivals Hewlett-Packard Co. and International Business Machines Corp. (IBM).

Once the acquisition is complete, Perot, founded in 1988, will become Round Rock, Texas-based Dell's services unit. The current chief executive officer of Perot, Peter Altabef will continue as its new CEO.

Meanwhile, Ross Perot Jr., Perot Systems' chairman, may be iducted to the Dell board.

''This significantly expands Dell's enterprise-solutions capabilities and makes Perot Systems' strengths available to even more customers around the world,'' said Michael Dell, chairman and CEO of Dell.