Dell Agrees To Acquire Wyse Technology


Dell has agreed to acquire Wyse Technology, extending its recent acquisition spree into the desktop virtualization space.

Terms of the deal were not disclosed. The acquisition allows Dell to expand its cloud client computing capabilities and enterprise solutions portfolio, said Jeff Clarke, president of end user computing solutions at the Round Rock, Texas-based vendor.

"Desktop virtualization can help organizations streamline IT management, improve productivity and security, and increase cost efficiency for discrete workloads or usage scenarios," Clarke said in a statement. "The Wyse Technology desktop virtualization capability complements Dell's strongest-ever device and computing solutions portfolio, and strengthens our position in offering customers among the broadest set of computing choices from the edge to the core to the cloud."

Related: The 20 Coolest Cloud Platform Development Vendors

Wyse Technology was the top vendor in thin client unit shipment volume in the fourth quarter, and the end-to-end data center infrastructure stack for these solutions is expected to exceed $15 billion by 2015, according to IDC.

"The total market for desktop virtualization solutions should continue to see strong growth globally, with the larger revenue and margin opportunities coming from the datacenter infrastructure, cloud and services offerings that are tied to thin client and desktop virtualization technology sales," said Matt Eastwood, group vice president of enterprise platform research at IDC, in a statement. "Thin client and desktop virtualization solutions typically drive high attach rates to data center solutions, including servers, networking, storage and services."

Wyse Technology, based in San Jose, Calif., was founded in 1981, and has more than 3,000 solution providers worldwide and shipped more than 1 million units in 2011.

Dell's Wyse acquisition comes two weeks after Dell agreed to acquire SonicWall.

The transaction was approved by the board of directors of each company and is expected to close in the Dell's second quarter, according to Dell.

"The combination of Wyse and Dell provides us with tremendous growth opportunities for our core desktop virtualization business, helps us expand into new and fast-growing market segments including mobility and cloud computing, and provides us with reach and scale we did not previously have," said Tarkan Maner, president and CEO of Wyse Technology, in a statement.