Dell, a maker of computer monitors, routers and other consumer electronics, said Thursday it would buy the doen sales division and a smaller business from the computer maker.
The deal is the largest corporate purchase in Dell’s history and a major expansion of the company’s technology business, which has seen a strong uptick in revenue since it gained prominence in the dot-com boom.
Dell said in a statement that the deal would help the company expand its global footprint, and the buyout includes the doens business in North America and the European business.
“The company has a strong brand and strong relationships with its customers across the globe,” said Dell’s chief executive, Craig Federighi.
“We will work closely with the doans and doen team to ensure Dell continues to serve our customers.”
The deal will give Dell the global footprint of Dell, the largest PC maker in the world, and gives it the power to build new products that can be sold in other countries, including the U.K., France and China.
The purchase price is about $1.6 billion, according to the company.
Dell has struggled with its fortunes in recent years as sales have slipped.
Sales at its global headquarters in San Jose, California, fell 9.4 percent in the third quarter, the company said in its third-quarter earnings report.
The company had a net loss of $2.8 billion for the year ended March 31, according in the earnings release.
In recent years, Dell has been expanding its products to customers outside the U, with the expansion of its online store, Dell TechCenter, and a new online store for employees.
In addition, the PC maker has invested in cloud computing services that are designed to help its customers manage their computing devices and keep them up to date.
“Dell’s focus on global expansion, coupled with its leadership in cloud-based technology, is one of our most important driving forces for growth,” Federighis said.
“While we will continue to grow the company, we also want to expand Dell’s core business in the United States, Canada, and Europe, where it is most well-positioned.”
Dell shares rose more than 2 percent in after-hours trading.
The stock was up 6.5 percent in London.
Dell, based in Sunnyvale, California , has seen its stock price rise about 30 percent over the last decade, fueled by a surge in computer sales and a desire for Dell’s laptops.
The software giant is the world’s second-largest computer maker behind HP Inc. The acquisition of the doanos sales unit will help Dell expand its business and boost revenue, the stock said.
The unit sells software to companies and institutions for use in their businesses.
Dell’s stock closed down 4.2 percent in premarket trading.
Dell was founded in 1984 as the first company to make a computer, and it is still one of the most successful in the U for a number of reasons.
Dell is known for its servers, including its popular servers for the web and personal computing.
It has sold servers to other companies, such as Microsoft Corp. and IBM Corp. It is also one of a handful of major corporations that owns a software firm called Compaq.
Dell also sells network equipment, and in recent months has been working to sell its networking division, which is now called Wintel.
“Our strong performance in the past decade, coupled to Dell’s growth strategy and our strong position in the global computing marketplace, has driven our share price to an all-time high,” Federides said in the company statement.
Dell shares closed down 1.3 percent at $33.90 in early trading.
Follow USA TODAY technology writer Stephen Lendman on Twitter: @sndendman.
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