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NTT Data to purchase Dell’s IT service business for U.S. $3 billion
CLOUD

NTT Data to purchase Dell’s IT service business for U.S. $3 billion 

The two companies announced this week that they have entered into a definitive agreement that will see the Japanese conglomerate acquire the Texas-based organization’s consulting division that offers infrastructure and cloud services, application services and business process outsourcing services.

The deal will enable Dell to considerably lessen the $43 billion in debt it is taking on to pay for its acquisition of data storage company EMC Corp. That cash-and-stock acquisition is worth an estimated $60 billion.

Some of the IT consulting division’s capabilities were seen as redundant following Dell’s purchase of EMC.

“Welcoming Dell Services to NTT DATA is expected to strengthen our leadership position in the IT Services market and initiates an important business relationship with Dell,” Toshio Iwamoto, president and CEO of NTT said in a statement.

“Our investments in digital services, application modernization, tools, automation and ‘as-a-service’ models, have enabled Dell Services customers to simplify their IT environment, empower their workforce, engage their customers and grow,” said Michael Dell, chairman and chief executive officer of Dell Inc. 

When the transaction is completed, clients and employees of Dell Services and NTT DATA will also benefit from:

  • A significant expansion of BPO capabilities, particularly in healthcare and insurance industries
  • Increased infrastructure platform, with the Dell Services data centers in the U.S., U.K., and Australia joining NTT’s 230 data centers around the globe
  • Expanded technology resources to provide next-generation application and business process services to help clients leverage IT to drive business performance and outcomes

NTT said it will pay about $3.05 billion for Dell’s IT consulting division. The amount excludes debt and unspecified advisory fees.

The division was originally owned by former U.S. presidential candidate Ross Perot. It was formerly called Perot Systems and it is a major provider of tech consulting services to hospitals and government departments. Dell acquired the division in 2009 for $3.9 billion.

 

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