TCS joins auction for Dell’s Perot Systems: Sources

Tata Consultancy Services Ltd has reportedly joined the bidding process for Perot Systems, IT management business of Dell Inc, according to sources.

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The immediate impact for the Indian IT companies would be from the banking, financial services and Insurance (BFSI) segment as London is a financial hub and the current uncertainty would only delay new contracts. (Reuters)

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Tata Consultancy Services Ltd has reportedly joined the bidding process for Perot Systems, IT management business of Dell Inc, according to sources.

The company has been in talks for acquiring the company since last year, but re-emerged as a bidder in the last few days, the source added.

The Economic Times first reported that TCS was still interested in Perot Systems. Dell declined to comment, while TCS could not immediately be reached.

Dell had been seeking more than USD five billion for Perot Systems, but is unlikely to receive that price tag, the people added.

Perot Systems is major provider of IT consulting to hospitals and government departments. Founded in 1988 by former U.S. presidential candidate Ross Perot, it was acquired by Dell in 2009 for USD 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 Corp.

Both the sale of Perot and the software assets will help Dell reduce its debt load ahead of its acquisition of EMC.

The merger with EMC is scheduled to close by October 2016, subject to approval by EMC shareholders.

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