Dell To Buy Perot Systems for $3.9 Billion

dellComputer maker Dell has announced a deal to acquire computer services company Perot Systems for a whopping $3.9 billion. Perot Systems—founded by two-time presidential candidate Ross Perot—is a major IT technology and business solutions providers, helping companies manage operations and internal systems in order to meet their business goals and increase the efficiency of their operations. Dell plans to offer $30 in cash for all outstanding Class A shares of Perot Systems; the deal represents a 67.5 percent premium over Perot Systems’ recent market value—indicating Dell strongly believes the business will do well going forward.

Dell plans to set up Perot Systems as its own services unit, offering IT integration, development, and consulting services to major clients like government agencies, enterprises, health care organizations, and small- and medium-sized businesses. In addition to developing, deploying, and maintaining systems, software-as-a-server offerings, and offering infrastructure services, Dell sees the acquisition as an opportunity to move Dell hardware onto the desktops and into the server rooms of Perot Systems customers.

“We consider Perot Systems to be a premium asset with great people that enhances our opportunities for immediate and long-term growth,” said Dell CEO Michael Dell, in a statement. “This significantly expands Dell’s enterprise-solutions capabilities and makes Perot Systems’ strengths available to even more customers around the world. There will be efficiencies from combining the companies, but the acquisition makes such great sense because of the obvious ways our businesses complement each other.”

Companies that make high-tech hardware have always faced a bit of a dilemma: as processors get faster, memory gets cheaper, and new technologies come along, their gear has a very short life span in the marketplace, and they constantly have to invest in R&D to make new gear. That’s one reason so many companies look to get into the technology services market: getting paid to help folks their constantly-changing information technology and hardware is a slightly safer game than making the hardware itself.

Dell expects the acquisition to start contributing to the company’s bottom line in 2012. Current Perot Systems CEO Peter Altabef will become the head of Dell’s services unit; Dell also expects to consider Perot Systems; chairman Ross Perot, Jr. for a seat on Dell’s board of directors.

Product Review

The 2019 Audi RS 5 Sportback lets you have your 444-hp cake and eat it, too

Audi expanded the RS 5 family with a high-performance sedan named Sportback. It stands out from rivals like the BMW M3 with a shapely fastback-like silhouette, and it surfs the downsizing wave with a twin-turbocharged 2.9-liter V6 in lieu…
Computing

Apple AR glasses will launch in 2020, says respected industry analyst

Apple AR glasses may be closer to reality than we thought. Here is everything we know so far about the augmented reality system, including the rumored specifications of Apple's Project Mirrorshades.
Music

Spotify vs. Pandora: Which music streaming service is better for you?

Which music streaming platform is best for you? We pit Spotify versus Pandora, two mighty streaming services with on-demand music and massive catalogs, comparing every facet of the two services to help you decide which is best.
Movies & TV

'Prime'-time TV: Here are the best shows on Amazon Prime right now

Amazon Prime brings more perks than just free two-day shipping. Subscribers get access to a huge library of TV shows to stream at no extra cost. Here are our favorite TV shows currently available on Amazon Prime.
Computing

Asus claims ‘world’s thinnest’ title with its new Zephyrus S gaming laptop

The Republic of Gamers arm at Asus is claiming “world’s thinnest” with the introduction of its new Zephyrus S gaming laptop measuring just 0.58 inches at its thinnest point. The company also revealed the Strix SCAR II.
Computing

Intel teases new dedicated graphics card slated for 2020 release

Intel has confirmed plans to launch a dedicated graphics card in 2020. Although precious few details exist for the card at this time, it was silhouetted in a recent Intel video showcased at Siggraph 2018.
Computing

Is your PC safe? Foreshadow is the security flaw Intel should have predicted

Three new processor vulnerabilities have appeared under the 'Foreshadow' banner. They're similar in nature to Meltdown and Spectre, only they steal data from different memory spaces. Here's everything you need to know.
Computing

AMD Threadripper 2990WX hits 6GHz under liquid nitrogen overclock

AMD's Threadripper 2990WX was already powerful when it debuted with 32 cores and 64 threads, but one overclocker has used liquid nitrogen to push a single core up to 6GHz for a new world record.
Computing

Arm’s future CPU designs may finally catch up with Intel in laptops by 2020

Arm publicly revealed its CPU road map for the first time, covering designs to be released through 2020. Typically disclosed under an NDA, Arm revealed its plans to show how its CPU designs will advance the always-on laptop.
Photography

Color grading pushes Pinnacle Studio 22 toward more pro video editing features

Designed for videographers that aren't pros but aren't basic users either, Pinnacle Studio 22 expands its advanced tools with color grading and four-point editing. The updates bring more advanced tools to the platform.
Emerging Tech

Buying on a budget? Here’s all the best tech you can snag for $25 or less

We live in a world where you can get a cheeseburger for $1, a functioning computer for $5, and thousands of HD movies for $10 -- so it stands to reason that you should be able to pick up some pretty sweet gear for $25.
Computing

Australian student hacks into Apple, steals 90GB of data because he’s a ‘fan’

A 16-year-old student in Australia broke into Apple’s network multiple times for an entire year to download 90GB of “secure” data and access customer accounts. He did this because he was a "fan."
Web

Google claims censored search in China is ‘not close’ as employees protest

Google CEO, Sundar Pinchai, has promised employees that the company is "not close" to releasing a censored search product in China, despite claims that it was working on such a project.
Web

Adobe Spark Page makes web design easy — here’s how to use it

Using artificial intelligence and simple tools, Adobe Spark Page is designed for easy web page design. Here's how to use Adobe Spark Page to create a travel journal, event page or any other one-page website.