Dell to buy Perot Systems for $3.9 billion

Computer maker Dell will acquire information-technology company Perot Systems for $3.9 billion in cash, as the PC giant looks to expand beyond its core hardware business, the companies said Monday.

The move marks a strategic shift for Dell, which has stuck with its personal computer and server sales even as its rivals like Hewlett-Packard (HP) and IBM (IBM, Fortune 500) continue to diversify amid slumping hardware sales.

"We've seen this coming, but I'm surprised it took as long as it did," said Gartner analyst John Enck. "This path is a necessary ingredient to future success, which being a hardware-only provider would have limited."

Dell plans to buy Perot for $30 per share, a 67% premium to the IT firm's Friday closing price of $17.91. The deal is expected to be completed during Dell's fiscal fourth quarter ending in January.

From the pages of CNN IBN

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