After the market close on Thursday, April 21st, Dell announced the intent to purchase Dell Financial Services Canada, LTD and CIT Vendor Finance’s Dell related assets and sales and services functions in Europe. These assets are related to both Commercial (both regions) and Consumer (Canada only) customers and will be managed by Dell Financial Services (DFS). This transaction would also include adding hundreds of employees to DFS who bring regionally based financing expertise from both Canada and over a dozen countries in Europe.
DFS is coming off a very successful fiscal year that resulted in double digit growth in operating income. While we don’t disclose specific profitability, the return on assets is strong and adds economic profit to each of our business units. When completed, this acquisition will add approximately $800M of financing assets to a U.S. portfolio that is now over $4.5B.
This transaction is important for many reasons:
We look forward to being able to close the transactions over the course of the next year, subject to customary closing conditions. We will continue to partner with other bank and financing entities around the globe, including CIT, but we look forward to enhancing our global financing capabilities and portfolio as a result of this transaction.
We welcome your comments.