14 DAY TRIAL // Round Rock, Texas-based PC vendor Dell is reportedly planning a significant acquisition amid a period of competition for technology deals, according to a recent report on the Wall Street Journal. The company has made several moves in that perspective, pointing to an upcoming announcement of a possible acquisition. Unfortunately, the details of the alleged deal aren't yet available and the company is yet to officially confirm any potential move in this regard.
According to a recent WSJ report, citing sources close to the situation, the vendor's chief executive officer, Michael Dell, expects his enterprise to acquire a “significant-sized company” in the near future. This adds up to earlier statements made by Dell officials that they are looking for more deals, although no specific numbers or details have been provided. In addition, Dell has recently increased its buying power, which consists of more than US$9 billion in cash reserves, by selling US$1 billion in bonds. Another factor that adds up to the potential acquisition scenario is that Dell has hired ex-IBM M&A Chief Davin Johnson.
While Mr. Johnson's position in the Round Rock, Texas company is still under evaluation (due to a dispute with IBM concerning previous employment agreements), Dell's recent moves come as other industry players also take advantage of the current financial situation to further expand their business profile by acquiring smaller, yet promising companies. Intel is one such example, having recently acquired River Systems for approximately US$884 million, while NetApp and EMC Copr are currently battling over the acquisition of storage-software company Data Domain.
The name or specific details regarding said Dell acquisition are still a mystery, but there are some indications that the corporation is looking to expand its data-storage and tech-services businesses, according to the same WSJ report, citing people that have spoken with Chief Financial Officer Brian Gladden.