Deep in the heart of Texas, Dell and Perot Systems have come together.

To many there must be a sense of natural fulfillment in seeing Dell go down the same path as HP in acquiring a ready-made advanced services and integration company. But first the essential facts.

Dell Inc. (www.dell.com) made its name selling PCs direct to customers by phone, mail and internet. Over the years it has evolved into a more conventional business model and added to its product range with servers, network switches and, more recently, consumer electronics. In 2008 (year ended 31 Jan 2009) it had revenues of USD 61 billion and net income of USD 2.5 billion. The company founder, Michael S Dell, controls around 13% of the equity.

Perot Systems (www.perotsystems.com) was founded by Ross Perot in 1988, four years after he sold Electronic Data Systems (EDS) for USD 2.4 billion to General Motors. Perot Systems essentially recreated EDS but without the emphasis on outsourcing of huge government contracts. It has a serious amount of healthcare business. Ross Perot Jnr, the founder’s son, now heads the company that had revenues of USD 2.8 billion in 2008 with net income of USD 117 million. (GM sold EDS later and it is now part of HP)

The terms of the agreement look quite cosy. Dell is offering USD 30 per share in cash, apparently from its own resources. If the regulatory authorities approve and the deal goes ahead, Perot Systems will become Dell`s services unit led by Peter Altabef, the current CEO. Dell is expected to invite Ross Perot Jnr. to join the Dell board.

Certainly there seems a clear complementarity about the product and services fit of the two companies. But has Dell paid too much? Some financial observers think so. (http://blogs.barrons.com/techtraderdaily/2009/09/21/dellperot-kind-of-pricey-dontcha-think/?mod=yahoobarrons) Perhaps Dell wants to avoid all the hastle of a bidding match by pitching its first ball so high.

IBM, Accenture, Capgemini, TCS - or another of the Indian service companies - are possibles who might have counter-bid but will they do so now?

Last thought: around a third of Perot Systems’ staff are based in India!