Japan's NTT Data To Buy Dell's IT Services Unit

(RTTNews) - NTT Data, Inc., a unit of Japanese telecom giant Nippon Telegraph and Telephone Corp. (NTT), will acquire Dell Services from computer maker Dell Inc., the two companies said Monday.

Financial terms of the deal were not disclosed, but media reports indicated that the deal is valued at more than $3 billion.

Dell Services is an IT services provider with depth in vertical industries and offerings around infrastructure services, cloud services, application services, and business process outsourcing.

The acquisition will enable NTT Data to significantly expand its presence in North America, strengthen its global delivery network, and bolster its infrastructure capabilities. Japanese companies are increasingly scouting for overseas acquisition as they grapple with sluggish growth at home.

Dell Services, formerly known as Perot Systems, was founded by former U.S. presidential candidate Ross Perot in 1998. Dell acquired Perot Systems for $3.9 billion in 2009. However, Dell has been looking to sell Perot Systems to help finance its $67 billion acquisition of data storage provider EMC Corp. (EMC).

Media reports earlier this year indicated that Dell had received bids for Dell Services from NTT Data Corp., Cognizant Technology Solutions Corp. (CTSH), India-based Tata Consultancy Services Ltd., and French IT company Atos SE.

NTT Data and Dell noted that the combined company will become an IT and BPO solutions powerhouse for the healthcare industry. It will also have an 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.

John McCain, CEO of NTT Data, led this transaction and will have overall responsibility for leading the combined business.

Dell Services will continue to operate under the leadership of Suresh Vaswani, president of Dell Services, reporting to Michael Dell, until the transaction closes.