Dell Completes Tender Offer for Perot Systems

Tue Nov 3, 2009 7:00am EST
 
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ROUND ROCK, Texas--(Business Wire)--
Dell Inc. (NASDAQ: DELL):

* Provides Customers Extensive Capabilities in Enterprise IT Services and
Business Solutions
* Creates Dell Services Global Business Unit
* Names Peter Altabef President of Dell Services

Dell today announced the successful completion of its tender offer for Perot
Systems, an offer which expired Monday at midnight (EST). Dell has accepted the
shares validly tendered and has notified Perot Systems of its exercise of its
top-up option to acquire Perot Systems shares. As a result of the tenders and
the top-up option exercise, Dell will own more than 90 percent of outstanding
Perot Systems shares and expects to promptly complete the acquisition of Perot
Systems, significantly expanding Dell`s portfolio of technology services and
business solutions. The 108,774,629 tendered shares represent about 87.7 percent
of outstanding Perot Systems shares. An additional 3,961,266 shares were
tendered by notice of guaranteed delivery. 

Dell Services, a new business unit formed by the acquisition, will develop and
deliver a best-in-class suite of end-to-end IT services and business solutions
that reduce IT complexity and lower costs for customers. The integration of
Perot Systems extends Dell Services into hosting, consulting, applications and
business-process outsourcing, and expands Dell`s existing managed and modular
services. The combination leverages Perot Systems` capabilities across Dell`s
much larger customer base, spanning global corporations, government agencies,
health care and educational institutions, and small and medium enterprises. 

Dell Services will be one of the world`s largest technology services
organizations with more than 41,000 experienced and skilled technology- and
business-services professionals and revenue of approximately $8 billion from
enhanced services and support over the past four quarters. 

Peter Altabef becomes president of Dell Services, reporting to Michael Dell,
Dell chairman and chief executive officer. Mr. Altabef brings more than two
decades of leadership experience to his new role, including the last five years
as CEO of Perot Systems. In addition to previous Perot Systems operations, Mr.
Altabef is responsible for Dell`s commercial services-including consulting,
sales, marketing, quality and customer relationship management functions-and the
company`s internal IT. 

Dell expects the Perot Systems acquisition to be accretive to its GAAP earnings
in fiscal year 2012. Dell reports the results of its fiscal third-quarter 2010
on Nov. 19 and expects to hold an integration call with analysts and the media
in mid-December. 

Quotes:

Michael Dell: "Customers around the world want flexible, scalable solutions to
reduce complexity and drive even greater benefit from IT. The Dell Services
business-formed out of the powerful combination of Dell and Perot Systems-is an
exciting step forward in our ongoing commitment to develop and provide
best-value IT solutions." 

Peter Altabef: "Dell Services will be a powerful organization with the extensive
capabilities and global reach to address the needs of organizations of all
types. The Dell and Perot Systems integration teams have been extremely
productive in their planning, and we are ready to work on behalf of all our
customers." 

About Dell

Dell Inc. (NASDAQ: DELL) listens to customers and delivers innovative technology
and services they need and value. For more information, visit www.dell.com.
Investors wishing to communicate directly with Dell may go to
www.dell.com/dellshares. 

SPECIAL NOTE:Statements in this press release that relate to future results and
events are forward-looking statements based on Dell`s and Perot Systems` current
expectations, respectively.Actual results and events in future periods may
differ materially from those expressed or implied by these forward-looking
statements because of a number of risks, uncertainties and other factors.All
statements other than statements of historical fact are statements that could be
deemed forward-looking statements, including the expected benefits and costs of
the transaction; management plans relating to the transaction; the expected
timing of the completion of the transaction; any statements of the plans,
strategies and objectives of management for future operations, including the
execution of integration plans; any statements of expectation or belief; and any
statements of assumptions underlying any of the foregoing.Risks, uncertainties
and assumptions include the possibility that expected benefits may not
materialize as expected; that the transaction may not be timely completed, if at
all; that, prior to the completion of the transaction, Perot Systems` business
may experience disruptions due to transaction-related uncertainty or other
factors making it more difficult to maintain relationships with employees,
licensees, other business partners or governmental entities; that the parties
are unable to successfully implement integration strategies; and other risks
that are described in Dell`s and Perot Systems` Securities and Exchange
Commission reports, including but not limited to the risks described in Dell`s
Annual Report on Form 10-K for its fiscal year ended Jan. 30, 2009 and Perot
Systems` Annual Report on Form 10-K for the fiscal year ended Dec. 31, 2008.
Dell and Perot Systems assume no obligation and do not intend to update these
forward-looking statements.

Media Contacts:
Dell
Jess Blackburn, 512-728-8295
jess_blackburn@dell.com
or
Dell Services
Marvin Singleton, 972-577-5881
marvin.singleton@ps.net
or
Investor Relations Contacts:
Dell
Robert Williams, 512-728-7570
robert_williams@dell.com
or
Shep Dunlap, 512-723-0341
shep_dunlap@dell.com
or
Dell Services
John Lyon, 972-577-6132
john.lyon@ps.net



Copyright Business Wire 2009

 

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