Dell To Buy Cloud Software Maker Wyse Technology

April 2nd, 2012 by Manmohan Leave a reply »

Dell Inc. (DELL) agreed to acquire cloud-computing software provider Wyse Technology Inc. as the computer maker looks to extend its virtual desktop offerings.

Financial terms weren’t disclosed.

Dell–the world’s third-largest PC maker by sales behind Hewlett-Packard Co. (HPQ) and Lenovo Group Ltd. (LNVGY, 0992.HK)–recently hired private-equity executive and former CA Inc. (CA) head John Swainson to shore up its software business as its looks to focus on higher-margin operations like software and data-storage systems.

The company also agreed in February to buy backup and replication software maker AppAssure Software Inc., Dell’s first software acquisition since it formed its software group.

Dell expects to close the Wyse Technology deal in the second quarter and said it should add to earnings in the second half of fiscal 2013.

The company reported in February its fiscal fourth-quarter earnings fell 18% as a shortage of disk drives hurt its ability to sell higher-end computers, though revenue edged up 2.2%.

Shares closed Friday at $16.59 and were inactive premarket. The stock has gained 13% so far this year.

Source:http://www.nasdaq.com/article/dell-to-buy-cloud-software-maker-wyse-technology-20120402-00652

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