Dell is
hoping Perot Systems will fetch more than $5 billion, helping it trim its debt
load following its agreement to acquire data storage company EMC for $66
billion, including debt, the people said this week. The merger with EMC is
scheduled to close by October 2016, subject to approval by EMC shareholders.
The
auction for Perot Systems, however, has taken longer than expected because the
offers Dell has received thus far have failed to meet its valuation
expectations, the people said. Dell is now reconsidering which contracts it
will pass on to Perot Systems to boost the sale process, one of the people
added. The
sources asked not to be identified because the negotiations are confidential.
Dell,
Cognizant, Japan-based NTT and Atos, of France, did not immediately respond to
requests for comment. Perot Systems is major provider of IT consulting to
hospitals and government departments. Founded in 1988 by former US presidential
candidate Ross Perot, it was acquired by Dell in 2009 for $3.9 billion.
While
that deal helped Dell diversify beyond its core personal computer business, the
company is now focused on making inroads in cloud computing, business software
and data management -- a key driver of its deal to acquire EMC. Dell has also
been speaking to private equity firms about selling Quest Software, which helps
with information technology management, as well as SonicWall, an e-mail
encryption and data security provider. Together, these assets could be worth
around $4 billion.
Last
week, Dell registered SecureWorks, its cybersecurity unit, with the US
Securities and Exchange Commission for an IPO.
Dell has said its goal will be to reduce its debt load in the
first 18 to 24 months of its merger with EMC to achieve an investment-grade
rating. Dell will have $49.5 billion in debt under current plans to finance the
deal.
Agencies
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