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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

[email protected] 3/29/2016 | 3:50:21 AM
Services/support is where it's at for NTT In terms of international IT/tech support services in the NTT group, add Dell/Perot to Dimension Data -- OK, so that was acquired six years ago, but this is all adding up to a real powerhouse...

 

NTT Splashes $3.2B on DiData

http://www.lightreading.com/spit-(service-provider-it)/cloud-enablement/ntt-splashes-$32b-on-didata/d/d-id/678607

 

 
DanJones 3/29/2016 | 9:45:47 AM
Re: Services/support is where it's at for NTT Meanwhile, what's Dell's strategy here? Wouldn't an enterprise powerhouse want a services arm?
mendyk 3/29/2016 | 10:01:45 AM
Re: Services/support is where it's at for NTT That's the big question, Dan -- everyone else is zigging toward services. And Dell now zags. Why?
DanJones 3/29/2016 | 1:57:48 PM
Re: Services/support is where it's at for NTT Yeah, that's weird!
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