An executive of Dell recently told to the Reuters news agency that the company is seeking for acquisitions so that it can bolster its consumer, the small and medium sized businesses that accounts for about half the sales of Dell.
President of Dell ’s newly created consumer, small and medium business said on Tuesday to the news agency over a telephonic interview, “You will see acquisitions from us.”
He also added further in the interview, “They’ll be pointed toward 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 mentioned that Dell was basically looking at the key areas like the systems management and also the security.
President said, “Because of the great cash performance of the company, we ended the last quarter with approximately $11 billion in cash. So… we really have little limitation in what we can do and so it’s just going to come down to the return that we can get and how that meets our profile for delivering good returns to our shareholders.”
In 2009 the company bought Perot Systems, the technology services provider, for $3.9 billion. This was the largest ever acquisition of Dell in order to expand the technology services business and also to compete with giants like Hewlett-Packard Co. and IBM.
Dell, from the sale of personal computers generates over half of its revenue. Now it has diversified itself from PC to higher margin businesses like technology services. This was because the profit margin of the company was hurt drastically by the sales of lower-priced PCs.
Dell computers also competes with Acer and Lenovo. Last month the company said that it is focusing on the improvement of profit in the consumer business, which had hurt the overall gross margin performance of the company.
