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HEXUS.sharewatch: Dell’s acquisition of Perot poorly received

by Scott Bicheno on 28 September 2009, 14:13

Tags: Dell (NASDAQ:DELL)

Quick Link: HEXUS.net/qat7o

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A week ago, giant PC maker Dell announced it was buying IT services company Perot Systems for $3.9 billion in a move designed to increase its share of the lucrative enterprise IT services market.

However, Dell around a 60 percent premium for the Perot shares and investors are apparently unconvinced that this represents a good deal, with Dell's share price falling by over 8 percent last week.

Incidentally, Dell sent us this statement from Greg Davis, VP and GM of Dell global commercial channels, to clarify the implications of the acquisition for Dell's channel:

"The Dell-Perot acquisition is an important step for Dell, and illustrates our continued focus on enterprise computing. The acquisition expands Dell's enterprise services offerings, while minimally impacting our PartnerDirect registered and certified partners and the deals they register with Dell. We remain committed to providing the best portfolio of products and services for our channel partners and their customers."

Elsewhere, this was the first generally negative week for a while, with NVIDIA and the disties among the losers, while AMD continued its good run.

Company Listing Share price 7/9/09 Share price 14/9/09 Share price 21/9/09 Share price 28/9/09 7-day change Market cap (bn)
AMD AMD 4.53 5.68 5.70 5.83 2.3% 3.89
Apple AAPL 170.31 172.16 185.02 182.37 -1.4% 163.37
ARM ARMH 6.39 6.87 6.70 6.72 0.3% 2.85
Avnet AVT 26.52 26.52 26.22 25.90 -1.2% 3.92
Dell DELL 15.69 16.60 16.69 15.34 -8.1% 30.00
Google GOOG 461.10 472.14 491.46 492.48 0.2% 155.91
HP HPQ 45.10 46.10 46.15 47.02 1.9% 111.49
IBM IBM 117.46 118.05 122.11 121.08 -0.8% 158.72
Ingram Micro IM 16.82 17.44 17.17 16.78 -2.3% 2.74
Intel INTC 19.64 19.51 19.55 19.37 -0.9% 108.43
Microsoft MSFT 24.62 24.86 25.26 25.55 1.1% 227.67
Nvidia NVDA 15.11 16.30 15.22 14.50 -4.7% 7.94
Qualcomm QCOM 45.72 46.61 44.46 44.70 0.5% 74.31
Tech Data TECD 38.97 41.17 42.34 41.23 -2.6% 2.07
Dow .DJI 9441.27 9605.41 9820.20 9665.19 -1.6% N/A
FTSE 100 .FTSE 4918.51 5011.47 5170.33 5082.20 -1.7% N/A
NASDAQ .IXIC 2018.78 2080.90 2132.86 2090.92 -2.0% N/A