News
Deal expands Japanese IT provider’s presence in U.S., U.K., Australia.
Japan’s NTT Data this week agreed to acquire Dell Services, the IT division of U.S. PC maker Dell.
NTT Data said the deal expands its business process outsourcing (BPO) capabilities, particularly in the healthcare and insurance sectors. It also extends NTT Data’s infrastructure presence with the addition of Dell Services’ data centres in the U.S., U.K. and Australia.
Financial details were not disclosed, but according to Bloomberg, NTT Data has agreed to pay US$3.06 billion (€2.73 billion) for Dell Services.
Dell Services emerged from Dell’s 2009 acquisition of Perot Systems for $3.9 billion.
Dell began quietly sounding out potential suitors in late 2015 in a bid to raise cash to help fund its acquisition of storage company EMC.
France’s Atos, and Tata Consultancy Services reportedly showed interest, but then in mid-February NTT emerged as the favourite. Earlier this month, a Wall Street Journal report claimed NTT and Dell were negotiating terms.
"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," said John McCain, CEO of NTT Data, in a statement on Monday.
"Dell Services is a very well-run business and we believe its employee base, long-standing client relationships, and the mix of long-term and project-based work will enhance our portfolio," he said.
McCain will lead the combined business once the deal closes. Until then, it will continue to be led by Suresh Vaswani, who reports to Dell chief executive Michael Dell.
"I’m extremely proud of Dell Services’ solid growth, broad capabilities and deep domain expertise in healthcare and life sciences, banking, financial services, and insurance," Dell said. "Our investments in digital services, application modernisation, 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."
The transaction is subject to regulatory approvals; the companies did not provide an approximate completion date.
