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AP News

Dell buying software company Gale Technologies

ROUND ROCK, Texas (AP) — Dell Inc. said Friday that it is buying software company Gale Technologies for an undisclosed price, as the computer company branches out to offset weak PC sales.

Privately held Gale, founded in 2008, provides automation software that helps customers turn network and storage components into cloud or virtual infrastructures.

"Today, enterprises need solutions that enable operational benefits of speed, efficiency, and flexibility in the allocation and use of resources," Marius Haas, president of Dell Enterprise Solutions Group, said in a statement. "

On Thursday Dell said that third-quarter profit fell 47 percent on soft PC demand and it offered a weak outlook, as consumers buy more tablets and smartphones. Dell is trying to cope with the downturn in its PC business by expanding into software, technology consulting, data storage and computer server markets.

The company said Friday that it created a new Enterprise Systems and Solutions division, which will focus on optimizing infrastructure for enterprise applications and complex workloads for customers.

Dell shares fell 62 cents, or 6.5 percent, to $8.94 in afternoon trading. The stock has lost about half its value over the past nine months.

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