Perot Systems reorganizes, takes $48 million charge

January 24, 2001

Perot Systems, an active player on the acquisition front in healthcare last year, has announced an organizational restructuring plan that will eliminate 200 jobs worldwide and result in a $48 million nonrecurring charge. The company plans to

Perot Systems, an active player on the acquisition front in healthcare last year, has announced an organizational restructuring plan that will eliminate 200 jobs worldwide and result in a $48 million nonrecurring charge. The company plans to spread the charge over two quarters, allocating $37 million to fourth quarter 2000 (-20¢ per share) and $11 million in first quarter 2001 (-6¢ per share). As part of the reorganization, Perot Systems' marketing strategy will emphasize the three vertical channels that bring in two-thirds of its revenue: healthcare, financial services, and manufacturing. The company will also concentrate on three horizontal markets: business consulting, software engineering, and technology infrastructure services.

In moves that further increased its healthcare presence, Perot just completed two acquisitions. In December, Perot completed the purchase of Health Systems Design (a provider of healthcare payer services), and earlier this month the firm bought Covation (a managed-care services ASP).