Dell announced plans to acquire Wyse Technology, a leader in cloud client computing. Wyse’s portfolio includes thin client solutions, desktop virtualization, and cloud software. The acquisition will expand Dell’s desktop virtualization capabilities and boost its enterprise products such as servers, networking, storage, and services. Financial details of the deal were not disclosed. The transaction has been approved by the board of directors of each company and is expected to be finalized during the second quarter of Dell’s Fiscal Year 2013.
Dell Announces Intent to Acquire Wyse Technology
4/2/2012 - Round Rock, Texas
Dell today announced it has signed a definitive agreement to acquire Wyse Technology, the global leader in cloud client computing, to significantly extend its desktop virtualization offerings. The addition of Wyse will expand Dell’s desktop virtualization capabilities and provide new solutions and services opportunities for the full range of Dell’s enterprise offerings.
In some environments, a virtual desktop allows enterprises to more efficiently and securely manage their users and end point devices. With this acquisition, Dell expands its enterprise solutions portfolio and offers customers an ever broadening array of tailored solutions to meet their needs.
“The total market for desktop virtualization solutions should continue to see strong growth globally, with the larger revenue and margin opportunities coming from the datacenter infrastructure, cloud and services offerings that are tied to thin client and desktop virtualization technology sales,” said Matt Eastwood, Group Vice President, Enterprise Platform Research, IDC. “Thin client and desktop virtualization solutions typically drive high attach rates to data center solutions, including servers, networking, storage and services. The end-to-end datacenter infrastructure stack for these solutions is expected to exceed $15 billion by 2015.”
Wyse Technology Leadership
Wyse, ranked No.1 in thin client unit shipment volume on 4Q 2011, has shipped more than 20 million units worldwide and has over 200 million people interacting with its products each day. The company has more than 180 patents, both issued and pending, covering its solutions, software and differentiated intellectual property.
The Wyse solutions portfolio includes industry-leading thin client solutions with advanced management, desktop virtualization and cloud software.
o Management software - Secure, easy and scalable remote device management for the extended enterprise.
o Virtualization software - The best user experience with Microsoft, Citrix and VMware virtual desktop infrastructures.
o Mobility software - Secure mobile connectivity to your personal, private or public cloud for mobile devices.
Wyse Technology, founded in 1981, is headquartered in San Jose, Calif. and serves customers in more than 50 countries around the world. Wyse has more than 3,000 resellers and shipped more than 1 million units in 2011.
The transaction was approved by the board of directors of each company and is expected to be accretive to Dell non-GAAP earnings in the second half of its Fiscal Year 2013. Additional terms of the transaction were not disclosed. The transaction remains subject to customary conditions and is expected to close in the second quarter of Dell’s FY13.
“Desktop virtualization can help organizations streamline IT management, improve productivity and security, and increase cost efficiency for discrete workloads or usage scenarios,” said Jeff Clarke, president, End User Computing Solutions at Dell. “The Wyse Technology desktop virtualization capability complements Dell’s strongest-ever device and computing solutions portfolio, and strengthens our position in offering customers among the broadest set of computing choices from the edge to the core to the cloud.”
“The combination of Wyse and Dell provides us with tremendous growth opportunities for our core desktop virtualization business, helps us expand into new and fast-growing market segments including mobility and cloud computing, and provides us with reach and scale we did not previously have,” said Tarkan Maner, president and CEO, Wyse Technology. “We believe that taking this step with Dell is a very natural progression for our business and offers our customers many great advantages not available to them today.”
An analyst call with Jeff Clarke, president, Dell End User Computing; Dave Johnson, senior vice president, Dell Corporate Strategy; and Tarkan Maner, president and CEO, Wyse Technology; will be webcast live today at 8:45 a.m. Central Time and archived at www.dell.com/investor.
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