Japan’s NTT Data To Buy Dell’s IT Services Biz for $3.05 Billion

Dell is selling its IT services business to Japan-based NTT Data for $3.05 billion, the companies announced today. The deal is expected to expand NTT Data's global IT services portfolio while providing Dell with some of the funds it needs to pay for its acquisition of EMC Corp.

The deal for Dell's services division will provide customers of both companies with access to more business process outsourcing (BPO) capabilities, especially in the healthcare and insurance sectors, the company said. Customers will also benefit from expanded infrastructure and technology capabilities, according to Dell and NTT Data.

The transaction will be NTT Data's largest yet, according to reports. The privately owned Dell, meanwhile, will reap a part of the reported more than $60 billion it needs to borrow to help take EMC private and bring it into its fold.

'Unique Opportunity'

Founded in 1988 by two-time presidential candidate and businessman Ross Perot, the IT services firm Perot Systems was acquired by Dell in 2009 and renamed Dell Services. The business provides enterprise customers with services including digital transformation, BPO, infrastructure management, IT security, support and IT consulting.

Last week, Dell Services announced a number of large new customer signings with values of over $100 million, including American Express Global Business Travel, Blue Cross & Blue Shield of Rhode Island, the Dubai Health Authority and Thermo Fisher Scientific.

"There are few acquisition targets in our market that provide this type of unique opportunity to increase our competitiveness and the depth of our market offerings," NTT Data CEO John McCain said today in a statement announcing the Dell Services deal. He added that the acquisition is expected to enhance NTT Data's portfolio through its mix of long-term and project-based work.

Paving the Way for EMC Deal

Subject to the usual closing conditions and regulatory approval requirements, the...

Comments are closed.