California businesses often find themselves needing to investigate potential mergers and acquisitions, along with business formation issues when they decide to start new endeavors. Recently, well-known computer maker Dell announced that it had acquired California-based Gale Technologies Inc., although exact financial details were not released. Additionally, Dell announced the business formation of an Enterprise Systems & Solutions firm that would be focused upon topologies and solutions for enterprise and converged workloads.
Gale Technologies was founded back in 2008. At last report, the company boasted 75 employees, which may seem a small number when compared to the larger firm which acquired it. Dell is actually the world’s third largest manufacturer of computers. Its acquisition of Gale Technologies was the seventh such purchase made by Dell this year. The computer maker seems poised to redesign itself into a firm able to provide a full array of technology services.
Dell recently marked its fourth quarter in a row of decreased earnings, which could be in no small part due to the blooming popularity of tablets and smartphones. With this latest acquisition and the announcement of its new business formation, it is clear that Dell is making strides to re-position itself for continued success in the future. With an ever-evolving technological world, that seems a smart thing to do.
California companies that find themselves in a similar position may wish to look into their options when it comes to acquiring smaller firms or initiating the business formation of a new endeavor. This can help businesses to branch out and increase their odds of surviving in markets that can quickly change, such as the technology arena. It may not be the best choice in every situation, but for some it just may be the right step to take.
Source: Austin Business Journal, “Dell acquires California software company,” Christopher Calnan, Nov. 16, 2012