Dell is paying $3.9 billion for Perot Systems, a 68% premium over Perot’s actual stock value. Why does Dell think Perot is worth such a high price?
Buying Perot is part of Dell’s plan to expand its footprint in the IT services market, which may be a necessity in a time when hardware sales are falling. The 2007 hiring of Stephen Schuckenbrock, former COO at Electronic Data Systems, was one of several moves signaling Dell’s intent to move further into the services industry. But the Perot deal is the strongest step yet in this regard. “Over the last couple of years they have more or less created a platform for a true entrance into the service market,” says Forrester analyst Paul Roehrig. “They’re really over-exposed on the hardware side.
