Dell expands its financial resources to acquire the equipment of the IBM experts

It Time magazine/Ding (comprehensive report) Dell is looking to buy to reverse three years of disappointing growth. But the laborious acquisition of IBM's master, before the judge agreed with the only "can see not use", at the same time, its practice of mobilizing all executives to seek acquisitions has also been criticized by the industry for having failed to wait patiently for the PC industry to recover from a year of sluggish performance, which must show signs of change in the extraordinary times　　For example, to launch an acquisition that is big enough to affect the company's future. June 12, according to people familiar with the matter, Dell will be in the field of data storage acquisition of a "sizeable company." People who have recently communicated with Dell's chief financial officer said Dell wants to expand its data storage and technology services business.　　Dell has long relied on natural development to achieve growth, but the company recently made some unusual moves in the hope of active mergers and acquisitions. Dell, which already has more than 9 billion dollars in cash reserves, is still selling $1 billion in bonds on June 10 to further expand its financial resources and prepare for possible acquisitions.　　In May, Dell also dug up former takeover director Johnson from rival IBM, but the court imposed restrictions on Johnson's specific duties in Dell. Investors, bankers and industry analysts agree that as sales and market share in key areas are slipping, Dell is in urgent need of acquisitions to gain new profit growth, and the acquisition target is likely to be technology services and software companies.　　Since 2006, Dell has only acquired 10 companies, the largest of which is the storage vendor EqualLogic, which was completed in 2007, costing $1.4 billion. The digger was thwarted by IBM in May when Dell dug up Johnson, the head of the mergers and acquisitions business from IBM. May 21, IBM filed a lawsuit against Johnson, that his work agreement with Johnson to prohibit him from job-hopping to Dell.　　A spokesman for IBM said he was not allowed to hold senior strategic positions at Dell in accordance with Johnson's commitment to IBM.　　According to a court document, Johnson signed a statement on June 2 saying his work at Dell would be limited to understanding the company's business, including strategy, products, operations, and personnel before the court allowed him to do further work. Dell spokesman David Frink confirmed that Johnson is currently working at Dell, but he declined to provide details of Johnson's specific duties and other mergers and acquisitions in the company.　　However, bankers and industry sources said that the 55-Year-old Johnson would be a member of Dell's CEO Michael Dell, who was busy forming a merger team. A source close to IBM said Johnson had led all IBM mergers and acquisitions in the past few years, including the 2002 IBM $3.5 billion purchase of PwC's consulting business.　　The person said Johnson had "a lot of information" about IBM's acquisition plan. In the New York StateIn a lawsuit filed by the Southern District Court, IBM said Johnson had been employed by Dell in contravention of its previous Non-compete agreement and would also threaten IBM's trade secrets, including companies it plans to buy. In previous hearings, Johnson's work at Dell was heavily restricted. On June 4, the court ruled against Johnson advising Dell on any "business strategy" and asked Johnson to provide his lawyer with a daily log of his activities at Dell, including "hours of activity and related personnel".　　The court may also allow IBM lawyers to view the journal. Bonuses and acquisitions linked to the US law firm Cooleygodwardkronish Partner, labor law expert Elizabeth Lewis said: "(Johnson) This talent is not very rare." "Lewis believes that despite these restrictions, Johnson's employment with Dell still has a big impact on IBM." "This is certainly good for Dell," she said. "She believes that IBM must prove that Johnson has real business secrets, not just valuable experience."　　She cited the decision of the Federal Court of June 9 to Wisconsin State rival Johnson, a former top-company executive, despite Gollo's claim that the executive had sensitive information about the company's operations, but the court approved it.　　Hiring Johnson is not the only step in Dell's ability to boost mergers and acquisitions, and Dell Group President Steve Schukenbrock and the head of the public area group, Paul Bell, are being asked to look for potential acquisitions, and their bonuses are tied to growth in their own sector as a result of acquisitions.　　Sources believe that the plan is closely linked to Dell's current situation, which is that Dell hopes to see very limited prospects for profit growth by selling more hardware.　　Dell declined to comment on specific plans, but spokesman David Frink said many employees were responsible for advising their bosses on mergers and acquisitions, and that growth would be a factor in measuring the success of all employees.　　In addition to holding 10.1 billion of dollars in cash and a short-term investment plan in the closing quarter of May 1, Dell also raised purchasing power by issuing bonds. Show Wu, a senior analyst at the US investment bank, Kaufman Brothers, said in an investment report that June 10, Dell financed 1 billion of billions of dollars by issuing bonds, and is likely to use the money to carry out acquisitions. He argues that to compete with companies such as IBM, Hewlett-Packard, Apple, Acer and Cisco, "Dell's steps will be bigger and bolder".　　He rated Dell's stock as "Holding (Hold)".　　Relying on acquisitions to reverse the situation and face a sluggish growth in PC business, Dell is counting on acquisitions to reverse the disappointing growth of three years. Since 2006, Dell has been robbed of a lot of PC market share by rival Hewlett-Packard, and its earnings have been falling. In the fiscal quarter ended April 30, Dell's profits fell 63% and revenues fell 23%. An analysis of the investment organization Sanfordc.bernsteinco.According to the current situation, Dell does not have the scale, relationships and capabilities to compete with IBM, HP and other companies, said Saknagi, a division. Analysts and investors have asked Dell to acquire other companies to expand its business. But as Dell moves, rivals are starting to take advantage of the recession to buy tech companies at a discount. Not long ago, Intel said it planned to spend about 884 million dollars to acquire software company WindRiver, while NetApp and EMC, the data storage product maker, are also bidding for storage software company Datadomain.　　These will further worsen Dell's living environment. In addition to the increasing competition in technology deals, Dell faces other hurdles in mergers and acquisitions. Dell has little experience in mergers and acquisitions compared with IBM and HP. Sanfordc.bernstein's data show that since 2002, Dell has made 10 acquisitions, IBM and Hewlett-Packard 75 and 42 times respectively. And, compared with the last two companies, Dell's mergers are much smaller.　　Only a 1.4 billion-dollar acquisition of memory-maker EqualLogic at the end of 2007 is large enough to have a significant impact on revenue. In the end, Dell also needs to prove to investors that it has the ability to start acquisitions at a faster pace. "Whatever Dell buys, I want the target company to be small and easy to integrate," said Jeson Nolander, senior analyst at the US investment bank Robertw.baird. Large and changing mergers and acquisitions will lead to a wide range of risks and uncertainties.　　To that end, he rated the current Dell stock as "neutral" (Neutral). Experts suggest buying Palm analysts believe Dell's possible takeover targets include companies such as Palm, Motorola and BMC.　　From the present point of view, it will be a very timely move to increase the consultation service.　　For Dell, the most direct potential acquisitions are storage and server vendors who are increasingly struggling to survive on their own, with storage, server, software, and IT Solution services becoming Dell's short board, compared with HP, its most direct competitor, and IBM, the indirect competitor. Dell's attempts at storage and server markets are already quite clear-end of 2009 during his visit to China, Michael Dell admitted that his success in the "Netbook" field had only resulted in more shipments and market share, with limited help for profit, and that he was now more interested in "data centers, services and software vendors".　　Recently, Dell's chief financial officer Blaine Graden also said indirectly: Dell wants to expand its data storage and technology services business. In fact, since Michael Dell returned to the front line two years ago to take over the reins of the company, in addition to trying to personalize the Dell-branded computer and launch a massive distribution channel, the founder is still thinking about how to make Dell a competitive size like IBM and HP--that is,　　Dell should not be just a PC vendor. RemoveThe storage and server companies, there are fresher and more stimulating suggestions--investment bank Collinsstewart analyst Asoco Coumars believes Dell should acquire smartphone maker Palm. As a veteran smartphone provider, Palm has been dying in recent years, but this year's debut of a new pre made the company suddenly alive, and now the pre is even seen by some as the Apple iphone's most challenging enemy. As a result, when Dell was likely to enter the smartphone market this February, Palm immediately became the legendary Dell's most popular takeover target.　　Palm's holding company, Elevationpartners, has hinted that it is willing to sell palm if the price is right. Others argue that Dell does not have enough reason to buy palm, citing Dell as a hardware provider, and palm positioning itself as a company that provides software services. But who says hardware companies can't evolve into software companies? All the seemingly daring and even frantic acquisitions that have recently taken place in the industry can only prove one thing: the worst of years, whatever you do, is better than waiting for people to upgrade their computers.