Perot Systems To Acquire BearingPoint China

BearingPoint China Consulting's operations are to be acquired by Perot Systems, which, in turn, is being acquired by Dell.

The BearingPoint China deal, announced Monday, will beef up the IT services operations of both Perot Systems and Dell in China, particularly in Shanghai and Beijing where BearingPoint has long had offices.

"Dell, Perot Systems, and BearingPoint China Consulting all have successful track records of catering directly to the needs of clients," said Peter Altabef, president and CEO of Perot Systems, in a statement. "Unifying our service operations will significantly expand our reach and enhance our capabilities in China."

The BearingPoint deal closely follows the announcement that Dell plans to acquire Perot Systems for $3.9 billion. Financial terms were not disclosed for Perot Systems' purchase of BearingPoint China Consulting, which had $35 million in revenue last year. BearingPoint's main corporate entity, BearingPoint Inc., filed for bankruptcy protection earlier this year and has been selling off various units piecemeal.

BearingPoint China Consulting was established in 2001 and has specialized in providing consultancy expertise to Chinese businesses engaged in energy, automotive, insurance, and financial services. Noting that it previously announced key contracts in China's healthcare and manufacturing sectors, Perot Systems said the BearingPoint China Consulting operations will be merged with Perot Systems' Commercial Solutions business unit.

Ron Machan, chairman and CEO of BearingPoint China Consulting, will continue leading the BearingPoint China Consulting operation under the aegis of Perot Systems after the acquisition is completed. The acquisition must be approved by the U.S. Bankruptcy Court and the Chinese government.

In December 2008, BearingPoint's Chinese operations ranked 11th in Information Week's compilation of China's IT companies.

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