Dell Signs Agreement to Acquire Dell Financial Services Canada Ltd.
Round Rock, Texas
* Acquisitions provide Dell full ownership of customer lifecycle
* Expands Dell direct financing opportunities for customers in Canada and Europe
Dell today announced its intent to acquire Dell Financial Services (DFS) Canada Ltd., a CIT Vendor Finance and Dell partnership. In a separate transaction, Dell will acquire CIT Vendor Finance ’s Dell-related assets and sales and servicing functions in Europe. The acquisition of these assets will enable global expansion of Dell’s direct finance model. CIT Vendor Finance is currently a Dell financing partner operating on behalf of Dell Financial Services in more than 25 countries and will continue to support Dell for the transition period in Europe. CIT Vendor Finance will also continue to provide financing programs with Dell in select countries around the world beyond these transactions, including agreements in Latin America.
CIT Vendor Finance is a leader in vendor finance and leasing. Operating as Dell Financial Services, CIT Vendor Finance has provided vendor finance services to Dell customers for 14 years. CIT Vendor Finance’s global reach has allowed Dell Financial Services to directly integrate its services with the needs and demands of Dell customers around the world.
This acquisition is an important enabler of Dell’s increasing focus on providing customers with open and affordable technology solutions. Dell will have full ownership of the customer lifecycle and will capitalize on the scale of its U.S. operations to provide seamless financing services and competitive incentives. Customers will have greater direct access to financing opportunities from Dell in Canada and Europe, as well as further integration of financing terms and conditions.
“Dell Financial Services has grown by contributing to the success of its customers directly and through our valued relationship with CIT Vendor Finance, which remains strong. We’re able to offer customers end-to-end technology solutions and full financing capabilities to support them,” said Don Berman, president, Dell Financial Services. “Dell has a long-term strategic vision to expand our global captive financing footprint over time into regions where it makes sense. These acquisitions should help us achieve this vision.”
Ron Arrington, global president, CIT Vendor Finance, said, “We are pleased to support Dell as it grows its captive finance strategy to Europe and Canada. We are proud that Dell has recognized the value that CIT Vendor Finance creates for its partners by taking this program, built over more than a decade, to the next level. We look forward to our continued strong relationship with Dell in other countries around the world, as well as to the growth opportunities for CIT Vendor Finance globally.”
Closing and Initial Integration
The transactions are subject to customary closing conditions. The Canadian transaction is expected to close mid-2011. The European transaction is subject to additional regulatory requirements and is planned to close in 2012. Financial terms of the transaction were not disclosed.
Additional Information: www.dell.com/cit
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Statements in this press release 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 transactions 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.
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