IBM, Dell extend $16B pact
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September 27, 1999: 10:53 a.m. ET
Computer makers expand supply agreement to include $6B services deal
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NEW YORK (CNNfn) - International Business Machines Corp. and Dell Computer Corp. are expanding the scope of their $16 billion, seven-year strategic technology pact announced in March to include a new range of information technology services.
The new agreement, announced Monday, could be worth an additional $6 billion, the companies said. Other terms of the agreement were not disclosed.
Under the terms of the deal, Dell will offer its U.S. corporate, government and education customers installation and onsite warranty services from IBM Global Services for Dell's desktops, notebooks, workstations, network servers and data-storage products beginning in early 2000.
The companies said they intend to offer the same IBM services to Dell customers in international markets next year.
Under the seven-year agreement disclosed on March 4, IBM (IBM) said it would supply Dell with a range of components for its machines, including disk drives, chips, network attachments and monitors.
The March deal between Big Blue, the world's largest computer maker, and Dell (DELL), the biggest direct seller in the business, was called the largest supply deal ever announced involving two computer companies.
At the time, officials of the two companies said the pact was only the beginning of a partnership that could lead to further supply arrangements.
Dell said that in addition to its deal with IBM, it will continue to offer customers its own set of computer services, as well as those from Unisys Corp. and Getronics NV's Wang Global unit, two other key services suppliers to Dell.
Soon after the deal was announced, shares in IBM climbed 13/16 at 125-13/16, while Dell stock rose 1-1/6 to 44-3/4.
-- from staff and wire reports
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