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Dell to acquire Wyse Tech for $1bn

NEW YORK: Dell Inc, the world's third-largest maker of personal computers, paid about $1 billion to buy closely held Wyse Technology Inc, according to a person with knowledge of the matter.

Purchasing Wyse, which makes desktop devices for cloud computing, will boost earnings in the second half of fiscal 2013, Dell said today in a statement, which didn't disclose terms of the deal. David Frink, a spokesman for Round Rock, Texas-based Dell, declined to comment, as did Wyse's Tim Smith.

Wyse sells so-called thin drives, which connect personal computers to remote servers storing corporate data, as well as security software and services. The San Jose, California-based company has shipped more than 20 million devices worldwide, according to the statement today.

"A deal for Wyse makes strategic sense for Dell as a way to leverage its massive installed base of PCs," Brian Marshall, an analyst with ISI Group in San Francisco, said in a note to investors. He has a neutral rating on the shares.

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