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Dell Buys AppAssure, First Acquisition For Software Group

DOW JONES NEWSWIRES

Dell Inc. (DELL) acquired backup and replication software maker AppAssure Software Inc., Dell's first software acquisition since it formed its software group.

The computer maker recently hired private-equity executive and former CA Inc. (CA) head John Swainson to shore up its software business as its looks to focus on higher-margin operations like software and data-storage systems.

Dell, the world's third-largest PC maker by sales behind Hewlett-Packard Co. (HPQ) and Lenovo Group Ltd. (LNVGY, 0992.HK), said it plans to keep AppAssure's roughly 230 employees and will continue to invest in the company's engineering and sales efforts.

Terms of the transaction weren't disclosed.

Dell earlier this week reported a shortage of disk drives hurt its ability to sell higher-end computers in its fiscal fourth-quarter, helping to push earnings down by nearly a fifth. The company also took a downbeat view for its current quarter.

Shares closed Thursday at $17.40 and were inactive premarket. The stock is up 19% since the start of the year, outpacing gains in the broader market.

-By Mia Lamar, Dow Jones Newswires; 212-416-3207; mia.lamar@dowjones.com

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  02-24-120758ET
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