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Economic Times: Tata Consultancy Services Resumes Talks Over Acquisition of Dell’s IT Business

acquisitionTata Consultancy Services, an India-based information technology consulting firm, has resumed negotiations over its plans to acquire IT services provider Perot Systems from Dell, The Economic Times reported Monday.

Anirban Sen and Jochelle Mendonca write Dell plans to sell Perot Systems for approximately $5 billion and has secured offers from IT firms TCS, France-based Atos SE and Cognizant.

Sources told The Economic Times that TCS initially offered to buy Perot for less than $4 billion but ceased initial negotiations with Dell following a disagreement over the asking price.

Atos proposed an acquisition offer of approximately $4.3 billion for Dell’s IT business, while Cognizant offered to purchase Perot for approximately $4.2 billion, sources said.

James Bach also reports on the Washington Business Journal that the possible acquisition of Perot by a foreign buyer may lead to a spinoff of the federal business within Perot Systems.

“I think if a foreign-owned entity were to take a look at Perot Systems, that would be a possible catalyst for spinning out federal services independently, ” Arun Sankaran, a managing director at data analytics firm Govini, told the Washington Business Journal.

 

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