Dell Buys British IT Firm

It boosts its services portfolio.
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Dell

(DELL) - Get Report

acquired a British IT services company, broadening the PC maker's fast-growing services division.

The acquisition of privately held

ACS

will allow Dell to provide corporate customers with infrastructure-consulting and customized application services, Dell said Tuesday. Terms of the deal were not disclosed, and Dell said the acquisition was not material to its financial results.

Dell's services arm contributed 10% of Dell's $14.1 billion in revenue during the third quarter. But the group grew its revenue 21% year-over-year, compared with the company's overall growth rate of 5%.

With ACS, Dell said it will be able to improve its ability to service corporate customers at various stages of technology projects.

"By engaging earlier in the planning phases, we can help ensure critical changes, such as

Microsoft

(MSFT) - Get Report

Vista migrations, are well planned, designed and executed," said Stephen Murdoch, VP of Solutions and Services for Dell's Europe, Middle East and Africa division.

Dell said it plans to "integrate ACS employees fully into its operations" when the acquisition is finalized.

Dell is slated to deliver its third-quarter financial results on Thursday.

The company's stock was off 4 cents to $25.55 in extended trading Tuesday.