Dell Promises to Still Show Partners the MoneyBy Sara Driscoll | Posted 2008-04-01 Email Print
Dell says it is still committed to helping channel partners with financing, despite the company looking at a possible sale of its Dell Financial Services unit.
Dell has said it will continue to help channel partners finance deals, despite the announcement that the firm may potentially be looking to sell off its Dell Financial Services arm.
Dell said it has hired a major investment bank to help it undertake a six-month strategic review of its finance unit to determine the best structure and capabilities of Dell Financial Services.
"This may mean alternative ownership or operating structure," said David Frink, a Dell spokesperson. "We are committed to financing in the channel and will be providing this now and for the long term."
Frink said that this is simply "an opportunity to find a long-term partner to expand its financial offerings and investment or other structural changes," but that it is too early to tell what any outcome could be.
Dell Financial Services currently provides loans, leases and credit to end users and channel partners.
Back in December the PC giant bought back a 30 percent stake in Dell Financial Services held by CIT. Frink said the firm was contractually obliged to do this, but also believed sole ownership of its financial services arm was necessary to give the firm more freedom to consider its options.
At the time Dell said the buyback could lead to more tailored finance programs for the channel, although details have yet to be forthcoming.
The vendor also announced that it plans to close its PC plant in Austin, Texas, with the loss of 900 jobs, as it strives to meet its goal of cutting its global work force by 10 percent—around 8,800 people—and cut expenses by $3 billion within the next three years.
The news comes just days before the vendor’s analyst meeting on April 2 and
3 in Round Rock, Texas, where it will discuss its five strategic priorities—consumer,
enterprise, notebooks, small and medium enterprise, and emerging countries—along
with its financial model.