Dell, the world’s second largest maker of personal computers, has lost significant market share its rivals Acer Group and Hewlett-Packard, but the company plans to expand its business thanks to significant acquisitions it plans to make.

According to a report from the Wall Street Journal, chief executive officer of Dell, Michael Dell, is looking forward to acquire a significant-sized company in coming months to boost revenue. In particular, the maker of personal computers reportedly plans to expand its data storage and tech services businesses, both markets are likely to grow further while remaining lucrative.

Dell at present has $10.13 billion in cash, hence, can afford a big acquisition, especially considering the current market conditions. Dell needs to acquire other companies to successfully compete, especially now that the market is transforming rapidly.

“Dell simply doesn't have the size, doesn't have the breadth of relationships, and doesn't have the capability,” to compete with IBM, HP and others, said Toni Sacconaghi, an analyst at Sanford C. Bernstein & Co.

It is interesting to note that Dell did not acquire Sun Microsystems, Silicon Graphics and other companies that were for sale in the recent months, which puts general intentions of the computer maker under question. Dell has made ten acquisitions since 2002 and only one of the deals – the $1.4 billion acquisition of storage maker EqualLogic in late 2007 – was big enough to significantly impact revenue.

Tags: Dell, Business