Earlier this week Dell announced the acquisition of Perot Systems. All cash and a 68% premium this transaction is consistent with the theme that I mentioned in my initial post. Dell has a strong cash balance and needs to compete with HP and IBM. This deal is well timed and very strategic for both.
A secondary theme to the back to the future M&A direction is that the larger deals will likely occur earlier in the recovery cycle before valulations recover too much. Look for more in my opinion and a flurry in the 4th quarter as the eonomic data of the third quarter validates the intial phase of the recovery.