Dell has indicated it may look to exploit the relatively low valuations of technology companies in the current...
climate by acquiring more businesses.
The firm has made 10 acquisitions in recent years, with the purchase of storage vendor EqualLogic in late 2007 the most substantial at $1.4bn.
"There is a good opportunity to take advantage of the downturn to digest a big acquisition so we are stronger coming out of the downturn asset prices are getting pretty attractive," said CEO Michael Dell in a Q1 conference call last week.
Perhaps Dell head honcho had got a warm, fuzzy feeling about acquisitions given the success of the EqualLogic deal, a point he was quick to highlight.
"Previously we had not made any acquisitions, but in the past couple of years we have done 10 transactions. The only one of any size was EqualLogic, and that business is now roughly four times larger than when we started," he said.
"So yes, we will be looking in that direction, so stay tuned," Dell concluded, adding that it was stockpiling cash.
The boss did not leave any hints as to which part of the portfolio it may look to bolster, but given the drop in revenues across all its product groups, he has a pretty wide remit on which to build.
This story originally appeared on MicroScope.