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Perot Systems: “Dude, Let’s Sell to Dell”

Posted on September 21st, 2009 7:59am by Tim Rogers
Filed under Business, Hold On To Your Effin Hat

Dell is set to buy Perot Systems in a deal valued at $3.6 billion. I’m sure this has nothing to do with Hillwood’s defaulting on its Victory loan. Or with the implosion of the Perot family’s Parkcentral Global Hub hedge fund.

5 Comments to “Perot Systems: “Dude, Let’s Sell to Dell””

tiny little mouse that roars @ September 21st, 2009 at 9:19 am

Actually, it has more to do with the HP purchase of EDS driving up the premiums of IT service companies and Dell’s eroding PC-based profits.

It also has a lot to do with Ross’ disengagement from the business. And IT services is not Ross Jr.’s core competency or interest.

Hey, isn’t your business writer supposed to be on top of this stuff?
Ellie Fontaine @ September 21st, 2009 at 9:50 am

I checked PerotCharts.com for an explanation of this debacle that even “Forrest Gump could understand.” (Ross Perot, Dallas Morning News, 4/29/09). Didn’t see any mention of Hillwood defaults and imploding Global Hub hedge funds included among the charts and videos where Ross warns us that looming debt will ruin our future. So, I’m sure you’re right. No dots to connect here. But all the same, Ross might want to get ready for stay-cations and refresh on the bugaboo of entitlement details. Just sayin’, not judgin’.
TehMudKipZ @ September 21st, 2009 at 10:49 am

It has nothing to do with it. By becoming a part of Dell we (as Perot Systems)just became a larger force to compete in the market. More countries, more money, more people. The Perot family has more money than they can spend, and you see that in their philanthropic work around the state of Texas and around the World. As a veteran employee of Perot Systems and survivor of many acquisitions from the dot com era this is the first time I am confident that this will be a great deal for us as Perot employees, for Dell, and for Texas jobs.
hal @ September 21st, 2009 at 2:54 pm

This also has to do with Perot’s nice revenue stream and government contracts (a plus for Dell) and, like EDS, Perot’s shrinking profit margins. This industry used to make 20%+ profit margins in the salad days.
Spamboy @ September 29th, 2009 at 10:06 pm

@Ellie, @Tim It’s cute to make a connection between the Perot’s finances and the sale of the company, but noone would refuse to accept a deal that included a 68% premium on your company’s stock. Considering how much Dell wants to expand in the Services area, it should be a good deal for anyone connected to Perot Systems.