Dell is intending to sell its IT services providing subsidiary Perot Systems for $5 billion in order to ease its purchase of EMC early next year. By doing so, the company can offset some of the debt that Dell plans take on for the huge EMC purchase, the biggest buyout in IT history.
All these days, the deal was on the table of EMC’s board of directors, who were hoping for a better prospect to buy out its assets. But no other company dared to challenge Dell’s $67 billion offer with more investment in buying EMC and so now the deal is locked with Dell.
Perot Systems which was founded by Ross Perot in June 1988 was providing IT services for healthcare, government, manufacturing, banking, insurance and other industries. The said company which was a Fortune 1000 Corporation was especially strong in health care industries with services such as digitizing and automating medical records.
In September 2009, Dell acquired Perot Systems for $3.9 billion and now is intending to sell it for $5 billion to several potential buyers, including Tata Consultancy Services in India, Atos in France, Genpact of New York, and CGI of Canada. However, no company is willing to buy Perot for the said price from Dell.
But Dell is sure that it could find a prospect for its Perot Systems by the end of this year and is planning to close the deal by early next year, in order to focus on buying EMC thereafter.