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Dell Buys Cloud Computing Firm Wyse Technology

Dell wants to expand its desktop virtualization capabilities and provide new vehicles for existing products.

ROUND ROCK, Texas (AP) — Dell has reached a deal to buy cloud computing company Wyse Technology for an undisclosed sum.

Dell wants to expand its desktop virtualization capabilities and provide new vehicles for existing products.

Wyse, based in San Jose, Calif., shipped more than 1 million units last year and over 200 million people use its products daily. The company has more than 180 patents issued or pending.

The deal, which is expected to close in the second half of fiscal 2013, has been approved by the boards of both companies. Dell said it expects the acquisition to boost its earnings in the second half of fiscal 2013.

Shares of Dell Inc., based in Round Rock, Texas, rose 14 cents to $16.74 in midday trading.