Jim Cramer Blog

Dell Inc. has struck a deal to buy ASAP Software Inc. for $340 million.
The Round Rock computer maker says the buyout will strengthen Dell's existing software business by integrating ASAP's complementary expertise in managing software licensing, purchasing, renewals and compliance.

ASAP provides information technology products and services to corporations and government organizations. Its subsidiary, License Technologies Group, specializes in licensing and e-commerce services for software publishers and their partners.
Dell (NASDAQ: DELL - News) says its corporate, government and institutional customers are increasingly demanding that Dell simplify software management. Buying ASAP is a key step toward doing that, Dell says.
"Merging Dell's software business with ASAP is part of our effort to re-invent and simplify the way our customers get access to IT," says Paul Bell, senior vice president and president, Dell Americas.
Dell has never been big on buyouts. Although it has made a few small purchases over the years, few have been large enough to trigger federal securities laws requiring it to disclose the purchase price.
Dell recently reached an agreement to buy privately held SilverBack Technologies Inc.SilverBack is a Billerica, Mass.-based provider of software and services to manage applications, systems and networks. Terms of that deal were not disclosed.
Executives of Dell have said their biggest buyout to date was in 2002, when they bought a small technology services company called Plural Inc. But even that deal wasn't large enough to require price disclosure because Dell had $30 billion in sales that year.
Dell hasn't reported its latest annual sales figures because of an internal investigation into its accounting practices. For its fiscal year that ended 2006, Dell reported $56 billion in revenue.
Published August 2, 2007 by the Austin Business Journal

Labels: DELL, Dell Inc.