Dell or will buy Citrix and Informatica

October 17 News, Dell Company has 16 billion U.S. dollars in cash, the company's CEO Michael Dell prepared to buy to combat the decline in PC demand, Citrix Systems and Informatica may be the acquisition target.

Dell, the world's third-largest PC maker, has lost nearly one-fourth per cent of its market share in the past five years as Asian competitors have eroded profits by adopting a low-cost model.

In the past 5 years, Dell has carried out about 20 acquisitions, averaging less than 1 billion dollars per case. The analysis argues that Dell should make larger acquisitions to expand the development of software and networks, such as the acquisition of Citrix, which sells programs, lets businesses reduce the number of servers, and Informatica, a data-integration software provider. The two companies, among the 14 largest US software providers, are expected to grow twice times this year, and last year they had twice times the profit per dollar revenue from Dell.

"Dell is suffering from a hardware commercialization," said Keith he, a 53 (fifth third) asset management company. "He believes that the acquisition of Citrix and Informatica" is meaningful. Dell needs to diversify its products further, and software is a natural choice. Because of the properties of Citrix, it is the natural choice. ”

More than 10 years ago, Dell turned to acquisitions after it lost more than half of its market capitalisation, at $150 billion trillion, since 2006. Over the past 5 years, Dell desktop revenues have fallen by 32%, as personal pc prices have fallen by more than 20% to 726 dollars per set.

Citrix, estimated at $11.9 billion trillion in equity value (Equity value), is expected to grow 16% this year. Informatica is worth about 5.1 billion dollars, and in the past 12 months, Informatica's operating profit was 20 cents, three times times that of Dell's profit margin.

To buy Citrix, Dell could have $16 billion trillion, or 5 billion dollars more if the software company buys a premium of 36%. Informatica is valued at 7 billion dollars.

Dell acquired Perot BAE in 2009 at a price of $3.9 billion, the largest acquisition ever by Dell.

(Responsible editor: The good of the Legacy)