The facilities management deal Swiss Bank Corp has signed with Ross Perot’s privately-held Perot Systems Corp is so big and so comprehensive – and so unusual for a bank – that the Basel company will seal it by taking a 24.9% stake in Perot Systems – which also gets a 40% interest in Swiss Bank’s Systor software development unit, which serves both Swiss Bank and other financial companies. In exchange for the 24.9% stake, Perot Systems not only gets a $250m a year contract to run the bank’s data processing operations, but also gets an undisclosed cash sum; the new contract will help lift Perot’s annual revenue to more than $600m next year from $300m last year, according to Perot Systems chairman Morton Meyerson. Ross Perot no longer holds any executive position at Perot Systems, being too busy with his diverse political and business interests, but a family trust still owns a 40% stake in the company. Executives of Perot Systems and Swiss Bank said they couldn’t put a precise value on the 24.9% stake, but the former predicted that the stake would be worth about $250m if Perot Systems goes public, which Meyerson said the company intends in about 18 months’ time. The Swiss Bank deal certainly enhances our desirability in the marketplace, said Meyerson. As part of its strategic alliance with Swiss Bank, Perot Systems will form a new division dedicated to selling computer services to financial companies, although it is questionable how many will want to deal with a company a quarter owned by a competitor bank. Some 700 Swiss Bank data processing employees will be offered employment in Perot Systems’ new division. Under the agreement, Swiss Bank will get 5m newly issued non-voting shares in Perot Systems for the undisclosed cash sum; because Swiss Bank operates in the US, it is barred by US banking laws from seeking a higher ownership stake in Perot Systems.
