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Dell is selling a $5 billion part of its business to help fund a $67 billion megadeal

Dec 15, 2015, 16:33 IST

Michael Dell, chief executive of Dell Inc, delivers his keynote speech at the All Things Oracle OpenWorld Summit in San Francisco, California September 25, 2013.REUTERS/Jana Asenbrennerova

Dell is looking to sell Perot Systems, an IT services company, for around $5 billion (£3.3 billion), according to Re/Code.

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The money raised would go towards the $67 billion (£44 billion) deal to acquire EMC, a data storage company that owns a stake in VMWare, among other things. Dell is looking to raise $10 billion (£6.6 billion) in total to help fund the deal.

The company bought Perot Systems for $3.9 billion (£2.5 billion) in 2009. It provides IT services to government agencies and health care providers, including handling media claims, and was founded by billionaire businessman Ross Perot.

Dell has been courting several potential buyers, including Tata Consultancy Services, an India-based IT firm; Genpact, a US-based firm; and Atos, a French-based IT firm. The talks with TCS reached advanced stages but subsequently broke down, Re/Code reports.

As PC sales fall worldwide, Dell is looking to transition into both a services company - offering software support, among other things - and diversify into other hardware areas, such as storage. EMC has revenues of $24 billion (£15 billion) per year.

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Dell is also looking to sell Quest Systems, an IT management solution with revenues of $857 million (£560 million), and SonicWall, a security company with revenues of $265 million (£174 million), according to Re/Code.

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