Perot Systems

Perot Systems Corporation was a United States information technology services provider established in 1988 by H. Ross Perot and eight associates after the sale of Electronic Data Systems to General Motors. Based in Plano, Texas, the company developed a business around enterprise technology services rather than consumer software or hardware. Its work included information technology consulting, systems integration, outsourcing, business-process support, and the development and operation of technology systems for large organizations. The company served several industry sectors, including healthcare, government, manufacturing, banking, insurance, and related enterprise markets. Healthcare became one of its most prominent areas of specialization. Perot Systems worked on digitizing and automating medical records and on broader information systems intended to support healthcare administration and clinical operations. This sector focus differentiated it from generalist infrastructure providers and helped establish the company as a significant healthcare IT contractor and services partner. Perot Systems expanded internationally during the 1990s and 2000s, maintaining offices in more than 25 countries, including locations in the United States, Europe, India, China, and Mexico. Before its acquisition, it was a Fortune 1000 company with more than 23,000 employees or associates. The company reported approximately $2.8 billion in revenue for 2008, making it a substantial independent services provider immediately before the transaction with Dell. Ross Perot remained closely associated with the brand, although by the mid-1990s he had limited day-to-day involvement while pursuing political activities. His family was reported to own approximately 40 percent of Perot Systems in 1996. That association created both commercial visibility and reputational questions. Company executives reportedly debated whether Perot's public political identity and reputation were an advantage for the business and whether the company should eventually adopt another name. Perot Systems ceased to operate as an independent public company after Dell announced and completed its acquisition in 2009. Dell paid approximately $3.9 billion and integrated the business as Dell Services. The transaction was intended to combine Perot Systems' consulting and outsourcing capabilities with Dell's computer hardware and enterprise technology portfolio. Dell later sold its services division, including the former Perot Systems operations, to NTT DATA in 2016. Perot Systems therefore survives primarily through the organizational and service businesses that passed first into Dell Services and later into NTT DATA, rather than as a standalone brand.

Perot Systems emerged from the business network associated with H. Ross Perot and Electronic Data Systems. After Perot and General Motors completed the sale of EDS, Perot and eight associates established a new company in June 1988. The new business was designed as an independent information technology services provider and was headquartered in Plano, Texas, a location closely associated with Perot's earlier technology enterprises. From its beginning, Perot Systems focused on serving institutional and enterprise customers. Rather than selling mass-market technology products, it provided consulting, systems integration, outsourcing, and technology operations for organizations whose information systems were central to their business or public mission. Its target sectors included healthcare, government, manufacturing, banking, insurance, and other industries requiring complex, customized systems. Healthcare became a particularly important area. The company supplied services related to the digitization and automation of medical records and supported broader healthcare information technology programs. This specialization gave Perot Systems a meaningful position in a sector where customers needed both technical expertise and familiarity with complex administrative and clinical processes. Government work and other large institutional engagements also contributed to its enterprise-oriented profile. The company expanded its geographic presence during the 1990s and 2000s. Before its sale, Perot Systems maintained offices in more than 25 countries, including the United States, Europe, India, China, and Mexico. By 2008, it had more than 23,000 employees or associates and annual revenue of approximately $2.8 billion. It was also identified as a Fortune 1000 company, reflecting its scale among publicly traded United States businesses. Ross Perot remained an important symbolic and ownership figure even as his direct operational involvement declined. In 1996, his family was reported to own about 40 percent of the company, while Perot himself was devoting substantial attention to political activity. His public reputation created a distinctive identity for the company, but it also led to internal discussion about whether the association with his political positions helped or complicated the corporate brand. Executives reportedly considered whether changing the company's name would reduce that tension, but Perot Systems continued under its established identity. The decisive turning point came in 2009. On September 21, Dell and Perot Systems announced a definitive acquisition agreement valued at approximately $3.9 billion. Dell sought to broaden its business beyond hardware by adding Perot Systems' consulting, outsourcing, systems integration, and industry-specific capabilities. Perot Systems customers, in turn, were expected to gain access to Dell's hardware and wider technology portfolio. The agreement provided for Dell to acquire all of Perot Systems' Class A stock for $30 per share, a premium of approximately 61 percent over the previous closing price. The transaction ended Perot Systems' existence as an independent public company and placed its operations within Dell Services. The former Perot Systems business continued to provide enterprise technology services under Dell's organization, although the standalone Perot Systems brand no longer operated independently. Dell later sold its services business to NTT DATA in 2016. As a result, the company's operational legacy continued through successor services organizations, while the original Perot Systems corporate entity became defunct.

• 2016

  Successor Dell services business moves to NTT DATA

  [1]Perot Systemsen.wikipedia.org

  NTT DATA acquires Dell's services business, which included operations descended from Perot Systems.

• 2009

  Dell announces acquisition

  [1]Perot Systemsen.wikipedia.org

  Dell announces an agreement to acquire Perot Systems for approximately $3.9 billion, including the purchase of its Class A stock for $30 per share.

• 2009

  Perot Systems is integrated into Dell Services

  [1]Perot Systemsen.wikipedia.org

  The acquisition is completed and Perot Systems becomes part of Dell's services organization.

• 2008

  Company reaches pre-acquisition scale

  [1]Perot Systemsen.wikipedia.org

  Perot Systems reported approximately $2.8 billion in annual revenue and had more than 23,000 employees or associates before its sale to Dell.

• 2008

  Recognized by Fortune for IT services

  [1]Perot Systemsen.wikipedia.org

  Perot Systems became a top-five finisher in Fortune's Most Admired Companies in America ranking for IT services for the third consecutive year.

• 1996

  Perot family ownership and branding debate reported

  [1]Perot Systemsen.wikipedia.org

  The Perot family was reported to own approximately 40 percent of the company, while executives discussed the commercial implications of the founder's political identity and whether the company should be renamed.

• 1988

  Perot Systems is founded

  [1]Perot Systemsen.wikipedia.org

  Ross Perot and eight associates establish Perot Systems in June as an independent information technology services provider headquartered in Plano, Texas.

Enterprise IT services provider with particular strength in healthcare technology, systems integration, outsourcing, and government-sector solutions.

• Healthcare IT

  Healthcare information technology services

  Perot Systems' healthcare practice supported the digitization and automation of medical records and related information processes. Its work addressed the technology needs of healthcare organizations and contributed to the company's reputation as a significant provider in the healthcare IT market.

• IT consulting and integration

  Enterprise systems integration

  The company designed, integrated, and supported information systems for large organizations across healthcare, government, manufacturing, banking, insurance, and other sectors. These engagements typically involved combining technology platforms with industry-specific operational requirements.

• Outsourcing

  IT outsourcing and managed services

  Perot Systems provided outsourced information technology operations and ongoing enterprise support. Its outsourcing model complemented consulting and integration work and was aimed at organizations seeking external management of substantial technology functions.

• Public-sector IT

  Government technology services

  Government was one of Perot Systems' principal customer sectors. The company supplied technology consulting, systems integration, and operational services for public-sector organizations requiring large-scale and specialized information systems.

• 2009

  Dell acquisition of Perot SystemsM&A

  Background

  Perot Systems had grown into a large international IT services company with more than 23,000 employees or associates and approximately $2.8 billion in 2008 revenue. Dell was seeking to expand its enterprise services and solutions business beyond computer hardware.

  Action taken

  Dell agreed to acquire Perot Systems for approximately $3.9 billion and to purchase all of the company's Class A stock for $30 per share, described as a premium of approximately 61 percent over the prior closing price.

  Aftermath

  Perot Systems ceased to operate as an independent public company and was integrated into Dell Services. Dell later sold the services business, including the former Perot Systems operations, to NTT DATA in 2016.

  Acquisition value. $3.9 billion acquisition consideration (2009)

  Source

1. 1Perot Systemsen.wikipedia.org