DealZone

What next for Dell?

Not content with buying Perot Systems last autumn for US$3.9bn followed shortly thereafter with the purchase of Kace Networks, Dell has a potential US$11bn war-chest to make further acquisitions.

“You will see acquisitions from us,” Dell’s Steve Felice told Reuters’ journalist Christoph Steitz on Tuesday. Felice is president of the company’s consumer, small and medium business, which makes up almost half of all Dell’s sales.

“[These acquisitions will] be pointed towards the strategy that we have as a company; and one of those key strategies is increasing the solutions, so that we can be the best-value solution provider to customers,” he added.

While Dell may be targeting the security and systems management space as a top priority to beef up its services business geared toward sectors such as government and healthcare, Felice’s comments bring up once again the whole mooted idea of Dell buying PDA maker, Palm.

Indeed, US$11bn worth of cash is a lot of money to play around with, particularly for SVP and M&A guru Dave Johnson, whom Dell controversially poached from IBM last year after he had spent 27 years at Big Blue.

from MediaFile:

Who runs mergers and acquisitions at Dell?

(Update: Dell PR misspoke about Johnson's responsibilities, and we've made changes below as indicated.)

Dell, which announced plans to buy Perot Systems for $3.9 billion on Monday, completed the deal without help from an executive in charge of mergers and acquisitions.

It's a touchy subject for Dell, which earlier this year named David Johnson to its executive team, poaching him from IBM where he served as head of M&A. IBM filed a lawsuit, saying that Johnson violated a non-compete agreement by taking the job with Dell. But IBM failed to persuade a judge to bar Johnson from working at Dell while the litigation is pending.