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Technology Stocks : Dell Technologies Inc. -- Ignore unavailable to you. Want to Upgrade?

To: T.R. who wrote (141731)	9/9/1999 9:46:00 AM
From: Mazman	Respond to of 176388

More on ConvergeNet acquisition.. (from Briefing.com) ... Dell Computer (DELL) 47 5/8 closed: In a week that began with Viacom and CBS' $80 bln merger--marking the largest media transaction ever-- it seems almost out of place to mention a mere $340 mln acquisition today. In this case, however, the size of the transaction is not the focal point, but rather, who it is that is making the acquisition. For the first time in its history, Dell Computer is acquiring another company,having announced after the close yesterday that it would be buying privately held, ConvergeNet Technologies, a storage network company focused on enterprise data storage technologies for storage area networks (SAN). As noted above, the cost of the purchase, in which Dell will exchange approximately 6.9 mln shares and take a one-time charge against after-tax earnings of $0.05-$0.07 per share, is relatively small change, but it stands out, particularly in the eyes of EMC Corp. (EMC) shareholders, as Dell takes aim at competing with EMC and others in the lucrative storage market. That said, we must not to put the cart before the horse as it should be noted that ConvergeNet had not yet sold a product prior to Dell's purchase, and until Dell can create products based on its newly-acquired technology, the Dell sales staff has been instructed not to compete directly with EMC's sales staff. Accordingly, Dell's CFO cautioned investors that "..it may take a while before a meaningful top line can be expected." Nevertheless, one can be assured that Dell, known for its innovative and efficient business model, will capitalize on the acquisition as ConvergeNet's SAN technology will enable Dell's PowerVault storage products and other storage systems to connect to servers of all types regardless of operating system. This flexibility should be a strong selling point to existing and future customers and should help Dell in its aim to quadruple its revenue in the next five years.