Computer giant Dell Inc. (NASDAQ:DELL) has agreed to acquire information technology services provider Perot Systems Corp. (NYSE:PER) for $3.9 billion in cash, undertaking its biggest purchase ever to compete with rivals IBM (NYSE:IBM) and Hewlett-Packard (NYSE:HPQ) in computer services.
Under the terms of the agreement Dell will commence a tender offer to acquire all of the outstanding Class A common stock of Perot Systems for $30 per share in cash, about 68% higher than the IT firm’s Friday closing price of $17.91.
The transaction, which sees Perot Systems becoming Dell’s services division under Peter Altabef, the current Perot Systems chief executive officer, is not subject to a financing condition.
This acquisition “significantly expands Dell’s enterprise-solutions capabilities,” CEO Dell said in a statement today. The deal “makes such great sense because of the obvious ways our businesses complement each other.”
The acquisition probably will boost profit in fiscal 2012, Round Rock, Texas-based Dell said in the statement. Dell directors are expected to consider Ross Perot Jr., Perot Systems’ chairman of the board, for appointment to the Dell board,” the statement added. Perot Systems was founded in 1988 by Texas billionaire Ross Perot, who twice ran for U.S. president.
The transaction, which is subject to customary government approvals and the satisfaction of other customary conditions, is expected to close in Dell’s November-January fiscal quarter.
Dell shares are currently trading down 92 cents, or 5.34 percent, to $15.83 in NASDAQ, while Perot’s shares are up $11.70, or 65.38 percent, to $29.62 in NYSE.