SEATTLE (AP) — In early September, Dell walked away from a bidding contest with Hewlett-Packard Co. over data-storage maker 3Par when the price topped $2 billion. Since then, Dell has made just one acquisition for an undisclosed amount — Boomi, whose software helps businesses send data back and forth between Web-based applications and desktop computer programs.
At the end of the most recent quarter, Dell's cash, cash equivalents and short-term investments totaled $14 billion. During a conference call with analysts, CEO Michael Dell addressed a question about the company's plans for that money.
QUESTION: Dell's net cash balance looks to be about the fifth largest in the entire tech space. How much of an appetite for acquisitions does the company have, and are you interested in paying bigger premiums for "hot" companies?
RESPONSE: "As we have said, we're going to have a bit of a disciplined — we will be patient in that approach to thinking about M&A (mergers and acquisitions). But we are also going to make organic investments in the business, and as we have done over the last several quarters, we will continue with a relatively modest buyback program as well. So, pretty disciplined with that approach right now."
No comments:
Post a Comment