Dell Computer Corp has reworked its relationship with its sole Russian distributor, IBS, and together the companies have founded a new company to take over the distribution of Dell’s personal computers in Russia. The new firm is called DellSystems and is part-owned by IBS, Dell and Citicorp. This investment was an opportunity. In the situation of economic disaster in Russia during the last three to four years IBS has been successful from day one of its operation, says Milsenko Horvat, manager of the Citicorp venture capital fund investing in IBS. He says the $25m fund will invest from $1m to $5m in private Russian companies. The DellSystems Ltd investment was the first so made by the fund. Dell Computer arrived at the DellSystems arrangement as an alternative to a representative office and as a natural evolution of its relationship with IBS. Its a value-added Dell office the like of which we have nowhere else in the world, says Eric Meurice, managing director of Dell Computer’s European Regional Businesses. DellSystems will now have its own war chest, enabling it to decide how best to target key customers.
