Dell Buys Ross Perot's IT Service Company For $3.9 Billion

Illustration for article titled Dell Buys Ross Perot's IT Service Company For $3.9 Billion

I always love me some Texas inbreeding. Austin based Dell announced that it will buy its neighbor Perot Systems for 3.9 billion buckaroos. Perot Systems, founded by infamous presidential candidate Ross Perot, is an IT services company that provides technology infrastructure to healthcare, government and other commercial businesses. The deal should be completed by January.


What does this mean for Dell? Well first of all that they just spent a crapload of money to expand its enterprise expertise. They are banking heavily on forging head first into IT services. Not only does this give them an added IT package but it means they will be able to sell more and more computers (maybe even that soon to be announced Latitude Z) to Perot Systems' global customers and thus compete to take back the crown of the number one computer manufacturer (HP knocked them off years ago). [Dell]



Dell might want to count their change after making this purchase. In '84 Perot sold EDS to GM for $2.5B. In '86 Ross walked out, taking the top EDS management with him, and threatened to shut down GM's computer systems unless they paid him another billion in severance pay. At the time it nearly cost Roger Smith his job at GM to come up with the $750M they settled on.

Wonder if Dell realizes what they've gotten into.