Dell Announces Intent to Acquire Wyse Technology
Date : 2/4/2012
Round Rock, Texas
- Extends Dell’s desktop virtualization capabilities and drives attachment of enterprise solutions, including servers, networking, storage and services
- Strengthens Dell’s strategy to offer customers innovative, end-to-end IT solutions from the edge to the core to the cloud
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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.
- Cloud clients: Wyse offers a wide selection of secure, reliable, cost-effective thin and zero clients designed to easily integrate into any virtualized or web-based infrastructure, while meeting the budget and performance requirements for any application.
- Cloud software: Technology powering a new world of cloud connected smart devices.
- Management software - Secure, easy and scalable remote device management for the extended enterprise.
- Virtualization software - The best user experience with Microsoft, Citrix and VMware virtual desktop infrastructures.
- Mobility software - Secure mobile connectivity to your personal, private or public cloud for mobile devices.
- Services: Wyse offers a wide range of cloud computing services to complement its cloud clients and software solutions. Services are available for specific or on-going engagements.
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.
About Wyse Technology
Wyse Technology is the global leader in Cloud Client Computing. The Wyse portfolio includes industry-leading thin, zero and cloud PC client solutions with advanced management, desktop virtualization and cloud software supporting desktops, laptops and next generation mobile devices. Wyse has shipped more than 20 million units and has over 200 million people interacting with their products each day, enabling the leading private, public, hybrid and government cloud implementations worldwide. Wyse works with industry-leading IT vendors, including Cisco®, Citrix®, IBM®, Microsoft, and VMware® as well as globally-recognized distribution and service providers. Wyse is headquartered in San Jose, California, U.S.A., with offices worldwide.
Dell Inc. (NASDAQ: DELL) listens to customers and delivers worldwide innovative technology, business solutions and services they trust and value. For more information, visit www.dell.com.
 IDC, Worldwide Enterprise Client Devices Tracker, Q4 2011 Results.
Statements in these materials that relate to future results and events are forward-looking statements based on Dell's current expectations. Actual results and events in future periods may differ materially from those expressed or implied by these forward-looking statements because of a number of risks, uncertainties and other factors. Risks, uncertainties and assumptions include the possibility that projected benefits may not materialize as expected; that the transaction may not be timely completed, if at all; that Dell is unable to successfully implement the plans, strategies and objectives of management for future operations, including the execution of integration strategies; and other risks that are described in Dell’s Securities and Exchange Commission reports. Dell undertakes no obligation to update these forward-looking statements.