Dell sells IT services unit to Japan's NTT Data
NTT Data will acquire Dell's IT services business, the companies announced Monday. Terms of the deal were not disclosed, but some reports peg the price above $3 billion.
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For NTT Data, the IT subsidiary of Japanese corporation Nippon Telegraph & Telephone, the deal could help position the company as a stronger player in North America.
NTT Data plans to use the acquisition to create a combined IT and BPO unit focused primarily on the healthcare and insurance industries, in addition to banking and financial services.
"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, NTT DATA CEO, in a statement. "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."
For Dell, the sale of its Dell Services division will free up some funds ahead of the company's $67 billion acquisition of EMC. Announced last year, the merger of Dell and EMC creates the largest privately held technology company on the globe and sets up Dell to diversify its business away from PCs.
Dell Services is the company's former Perot Systems division, which it bought for $3.9 billion back in 2009. Perot Systems was originally founded in 1988 by former presidential candidate Ross Perot.
That deal was also a move by Dell to shed the confines of its crumbling core PC business. But more recently Dell had been looking to sell the unit as it prepares to merge with EMC by mid-2016.