UPDATE 1-Dell to Buy E-mail Services Company for $155 millionBy Reuters - | Posted 2008-02-12 Print
Dell Inc said it will buy business e-mail services provider
MessageOne Inc, which was co-founded by Michael Dell's brother,
for $155 million in cash.
NEW YORK, Feb 12 (Reuters) - Dell Inc said on Tuesday it will buy business e-mail services provider MessageOne Inc, which was co-founded by Michael Dell's brother, for $155 million in cash.
MessageOne's software, which is delivered to customers over the Internet, helps companies manage and archive e-mail, minimize outage and prevent data losses, Dell said in a statement.
It said MessageOne is owned in part by two investment funds: Impact Venture Partners and Impact Entrepreneurs Fund. Dell founder and Chief Executive Michael Dell and his family are investors in the funds, which are managed by his brother Adam Dell.
Dell said it expected Michael Dell, his wife Susan and their children's trust to receive about $12 million from the deal. Adam Dell will get about $970,000 and his parents will receive about $450,000.
Michael Dell intends to donate their proceeds from the deal to charity, the company said, adding that the CEO was excluded from negotiating the terms and decisions of the acquisition.
Dell, the world's second-largest maker of personal computers, has stepped up the pace of acquisitions since Michael Dell retook the helm a year ago amid slowing sales growth and tough competition from Hewlett-Packard Co.
Dell last month completed the $1.4 billion purchase of EqualLogic, its largest acquisition since the company was founded in 1984. EqualLogic specializes in data storage technology, Dell's fastest-growing business.
Based in Round Rock, Texas, Dell's shares edged 0.8 percent higher to $20.09 in early trading on the Nasdaq.
(Reporting by Franklin Paul and Tiffany Wu, editing by Dave Zimmerman)
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