The sell-off of the former Perot Systems unit will help Dell fund its $67B acquisition of EMC.

Dan Jones, Mobile Editor

March 28, 2016

1 Min Read
NTT Data to Buy Dell's Services Arm for $3B+

NTT Data is buying the services arm of Dell in a deal reportedly worth over $3 billion.

The sale should help Dell Technologies (Nasdaq: DELL) raise cash for its planned acquisition of EMC Corp. (NYSE: EMC). Dell is aiming to create an "enterprise powerhouse" with EMC but needs capital to complete the buy-out. (See Dell Buys EMC for $67B in Biggest Tech Deal Ever and Dell-EMC-VMware Merger Could Push Comms to Kids' Table.)

NTT Data Corp. 's acquisition of Dell's Perot Systems Corp. (NYSE: PER) unit will help to make the Japanese company a major global services player. Dell bought Perot systems in 2009 for $3.09 billion.

"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 in a statement. He will lead the combined business after the buy-out is completed.

This means that Dell could be selling the Perot unit at a loss, even without taking into account inflation between 2009 and now. The Wall Street Journal is reporting that NTT Data will pay $3.05 billion for the IT services unit.

The acquisition is subject to regulatory approvals before it can be cemented.

— Dan Jones, Mobile Editor, Light Reading

About the Author(s)

Dan Jones

Mobile Editor

Dan is to hats what Will.I.Am is to ridiculous eyewear. Fedora, trilby, tam-o-shanter -- all have graced the Jones pate during his career as the go-to purveyor of mobile essentials.

But hey, Dan is so much more than 4G maps and state-of-the-art headgear. Before joining the Light Reading team in 2002 he was an award-winning cult hit on Broadway (with four 'Toni' awards, two 'Emma' gongs and a 'Brian' to his name) with his one-man show, "Dan Sings the Show Tunes."

His perfectly crafted blogs, falling under the "Jonestown" banner, have been compared to the works of Chekhov. But only by Dan.

He lives in Brooklyn with cats.

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