Japan's NTT Data Agrees to Buy Dell's IT Services Unit for $3 Billion

Advertisement
By Reuters | Updated: 29 March 2016 10:35 IST
Japan's NTT Data Agrees to Buy Dell's IT Services Unit for $3 Billion
Japan's NTT Data Corp said on Monday it has agreed to buy Dell Inc's information technology consulting division for over $3 billion to expand in North America and bolster its services business.

The move will allow US computer maker Dell to trim some of the $43 billion in debt it is taking on to fund its pending cash-and-stock acquisition of data storage provider EMC Corp, a deal worth close to $60 billion.

The Japanese company said it would pay around $3.05 billion, an amount that excludes debt and unspecified advisory fees.

The sale will also offer NTT Data, one of the world's largest technology services companies, a bigger foothold in the United States, where it is looking to expand in healthcare IT, insurance and financial services consulting.

Dell has also made progress in syndicating $10 billion of its financing package for the EMC acquisition dubbed 'term loan A', people familiar with the situation said earlier. This is expected to be increased in size by $500 million to $750 million due to strong demand, with the extra money to be used to downsize some of the more expensive tranches of the remaining $33 billion in financing, the people added.

Advertisement

The group of banks participating in the term loan A has been expanded from the original eight underwriters to 25, with more expected to join before the syndication is completed in the next week, the people said.

Formerly known as Perot Systems, Dell's IT services division is a major provider of technology consulting to hospitals and government departments. Founded in 1988 by former U.S. presidential candidate Ross Perot, it was acquired by Dell in 2009 for $3.9 billion.

Advertisement

However, Dell has since divested some of the unit's operations and integrated some others, which it is not including in the sale. Some of the unit's capabilities were seen by Dell as redundant in the wake of the acquisition of EMC.

Dell has also been speaking to private equity firms about selling Quest Software, which helps with information technology management, as well as SonicWall, an e-mail encryption and data security provider, Reuters has previously reported. Together, Quest and SonicWall could be worth up to $4 billion.

Advertisement

Dell's acquisition of EMC, which is backed by founder and Chief Executive Michael Dell as well as private equity firm Silver Lake Partners, is subject to approval by EMC shareholders. EMC is expected to hold a shareholder vote on the Dell deal in May, allowing for the transaction to be completed sometime between July and October.

Reuters had reported first on Feb. 12 that NTT Data was in exclusive talks to buy Dell's IT services unit.

© Thomson Reuters 2016

 

For the latest tech news and reviews, follow Gadgets 360 on X, Facebook, WhatsApp, Threads and Google News. For the latest videos on gadgets and tech, subscribe to our YouTube channel. If you want to know everything about top influencers, follow our in-house Who'sThat360 on Instagram and YouTube.

Further reading: Dell, Laptops, NTT Data, PC
Advertisement

Related Stories

Popular Mobile Brands
  1. Our Fault OTT Release Date: When and Where to Watch Final Chapter of Culpables Online?
  2. OnePlus 13s vs iQOO 13: Price in India, Specifications Compared
  3. OnePlus 13s Review
  4. OnePlus Pad 3 With 12,140mAh Battery Launched in India: Check Features
  5. OnePlus 13s Launched in India: Know Price, Specifications and More
  6. Tecno Pova Curve 5G First Sale Starts Today in India: See Offers
  7. Meta Explains Tech Behind Its Aria Gen 2 Glasses
  1. Hugging Face Releases SmolVLA Open Source AI Model For Robotics Workflows
  2. Redmi Pad 2 With 9,000mAh Battery, MediaTek Helio G100 Ultra Chip Launched: Price, Specifications
  3. Alphabet CEO Expects to Keep Hiring Engineers as AI Advances
  4. Amazon Said to Be Preparing to Test Humanoid Robots for Deliveries
  5. Google Doubles Gemini 2.5 Pro Rate Limit for Google AI Pro Subscribers
  6. Apple Said to Have Given iPhone Repair Business to Tata India as Partnership Expands
  7. Huawei Pura 80 Pro, Pura 80 Pro+ Design Teased; Pre-Reservation Begin
  8. Mistral Code AI-Powered Coding Assistant Introduced for Enterprise Developers
  9. Nothing Headphone 1 Launch Date Set for July 1, to Arrive Alongside Nothing Phone 3
  10. Ethereum Foundation Announces Overhauled Treasury Strategy Amid Scaling Push
Gadgets 360 is available in
Download Our Apps
Available in Hindi
© Copyright Red Pixels Ventures Limited 2025. All rights reserved.