Dell Consolidates Financial Services
Dell Inc. said that it will consolidate its financial services operation by purchasing Dell Financial Services (DFS) Canada Ltd., for an undisclosed sum.
The transaction for DFS Canada, which has been run as a partnership between Dell and CIT Vendor Finance, a New York City-based bank holding company with some $35 billion in finance and leasing assets, is expected to close by mid-year 2011, officials said.
In a separate transaction, Dell said that it will acquire CIT's Dell-related assets, and sales and servicing functions in Europe, a move the vendor said will allow it to expand its direct finance model globally. Terms of that deal, which is expected to close in 2012, were not disclosed.
"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," said Don Berman, Dell Financial Services president.
"Dell has a long-term strategic vision to expand our global captive financing footprint over time into regions where it makes sense," he said. "These acquisitions should help us achieve this vision."
CIT, which has worked with Dell for about 14 years, said that it will support Dell's customers in Europe during the transition period. Officials said that CIT will continue to provide financing programs with Dell in select countries, including agreements in Latin America.