Local Tech Wire 

Dell hires IBM's top merger and acquisition exec; IBM sues

On The Web

• InformationWeek report

Site Search

Dell (Nasdaq: DELL) , apparently gearing up to launch more merger-and-acquisition activity, has hired David Johnson, IBM’s “top buyout expert,” InformationWeek reported Wednesday.

As a result, IBM (NYSE: IBM) filed suit trying to block his departure, InformationWeek’s Paul McDougall added in a story headlined: "Dell Poaches IBM's Top M&A Exec "

The Austin, Texas Business Journal confirmed through Dell that Johnson had been offered a position.

IBM later confirmed to Bloomberg news service that it was trying top block Johnson's departure.

"The actual and potential corporate transactions as to which Mr. Johnson has knowledge span the entire range of IBM businesses and product lines," IBM said in court papers filed last week, InformationWeek reported.

"Among the highly sensitive information Mr. Johnson possesses is, for example, information regarding where and in what companies and technologies IBM will invest, at what times, at what rates of return, as well as information regarding potential divestitures," InformationWeek quoted the papers as saying.

Bloomberg talked with IBM spokesman Edward Barbini about the matter.

“Mr. Johnson has possession of valuable confidential information and cannot undertake a senior strategy position at Dell without violating his obligations to IBM,” Barbini said.. “Mr. Johnson repeatedly received significant compensation in exchange for agreeing to noncompete provisions.”

Dell, which operates one of its largest manufacturing plants in Winston-Salem, N.C., will name Johnson as senior vice president for strategy, according to the story. Johnson is vice president for corporate development at IBM, where he has worked for 27 years. He also is part of IBM’s “elite” integration and values team, McDougall noted.

According to a recently published biography at a conference where Johnson was a speaker, he is “responsible for IBM’s non-organic growth strategies, acquisitions, divestments, equity investments, and the integration of IBM’s acquisition.”

Johnson has been involved in more than 100 acquisitions. Dell, meanwhile, has made 10 deals in the past decade, InformationWeek noted.

InformationWeek noted that IBM has used two othe executives who recently left the firm, including Mark papermaster who is now a top executive at Apple.