Dell unit eyes takeover
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A subsidiary of Dell Inc said?Tuesday that it will acquire BearingPoint China Consulting as the world's No. 2 personal computer maker seeks to penetrate the domestic information technology service sector.
Perot Systems Corp, which was acquired by Dell for US$3.9 billion last month, said it will acquire BearingPoint China, which provides IT, applications and consulting services in the energy, automotive, insurance and finance industries.
The parties didn't reveal the financial terms of the deal yesterday. The transaction is subject to regulatory approval from the United States and the Chinese governments.
"We are pleased to add BearingPoint's expertise to our existing global consulting services," Peter Altabef, president and CEO of Perot Systems, said in a statement.
Industry insiders viewed the takeover positively as IT services will help Dell generate solid revenue as the PC market is competitive.
International Business Machines Corp paid US$3.5 billion to acquire PWC Consulting in 2002 and Hewlett-Packard Inc, the world's No. 1 PC maker, spent US$13.9 billion to buy US-based IT service provider EDS last year.
Revenue in China's IT services market will grow 20 percent to 200 billion yuan (US$29.3 billion) next year, according to CCID Consulting, a Beijing-based IT consulting firm.
Founded in 2001, BearingPoint, the former KPMG Consulting, has about 1,000 employees in China and offices in Beijing and Shanghai.
