Alexei Oreskovic
SAN FRANCISCO -- Dell(DELL Quote - Cramer on DELL - Stock Picks) has announced plans to snap up a company that makes software for MP3 players, as the PC vendor sharpens its consumer focus.
Dell said Monday that it plans to acquire privately held Zing Systems for an undisclosed sum. Mountain View, Calif.-based Zing develops software that enables consumers to listen to streaming audio and to manage digital music files. The company's software is featured on the SanDisk(SNDK Quote - Cramer on SNDK - Stock Picks) Sansa MP3 player, as well as on the Sirius Satellite Radio(SIRI Quote - Cramer on SIRI - Stock Picks) Stiletto 100 handheld device. Dell said it will use Zing to improve the entertainment experience that its products provide, reflecting, it said, the renewed interest and energy being directed at its consumer business. The deal is the latest in a string of acquisitions by the historically M&A-averse Dell. Last week, Dell announced a $340 million deal for ASAP Software. And in July Dell said it was acquiring Silverback Technologies for an undisclosed sum. Unlike those deals, which bolstered Dell's corporate software and services businesses, the Zing acquisition signals Dell's intent to make a bigger splash in the consumer market. Dell has traditionally concentrated on selling PCs and servers to corporations, with its consumer business run as more of an afterthought. Since founder Michael Dell returned to the CEO post in January, the company has created a new worldwide consumer group within the company and tapped an executive from Motorola's(MOT Quote - Cramer on MOT - Stock Picks) cell phone division to lead the group.
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