Dell sells services business to Japan’s NTT Data


news Computing giant Dell has announced that Japan-based NTT Data is to acquire its IT services consultation division, Dell Services.

The acquisition reflects NTT Data’s plans to expand globally, with a particular focus on the US.

According to Reuters, the $3bn deal will allow Dell to reduce the $43bn in debt it is taking on with the acquisition of data storage firm EMC Corp.

Toshio Iwamoto, President and CEO of NTT Data, commented: “Welcoming Dell Services to NTT Data is expected to strengthen our leadership position in the IT services market and initiates an important business relationship with Dell.”

NTT Data expects the purchase of Dell Services will allow it to offer a stronger portfolio of IT and digital business solutions across a number of industry sectors, including healthcare, financial services, insurance and the public sector.

“I’m extremely proud of Dell Services’ solid growth, broad capabilities and deep domain expertise in Healthcare & Life Sciences, Banking, Financial Services and Insurance,” said Michael Dell, Chairman and CEO of Dell. “Our investments in digital services, application modernization, tools, automation and ’as-a-service‘ models, have enabled Dell Services customers to simplify their IT environment, empower their workforce, engage their customers and grow,”.

Dell said that the move would bring a “significant” expansion of BPO capabilities, particularly in healthcare and insurance industries, and an enlarged infrastructure platform, with the Dell Services data centres in the US, UK and Australia joining NTT’s 230 other data facilities around the world.

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

“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. We are confident this transaction will be positive for clients, employees, and shareholders, and will advance our collective vision to be an innovative partner for our clients.”

In the interim, Dell Services will continue to operate under the leadership of Suresh Vaswani, President of Dell Services, reporting to Michael Dell, until the transaction is completed.

“This acquisition will create even more value for customers and will benefit employees as they become part of a top 10 global IT services business.” said Vaswani.

Dell Services was formed following Dell’s 2009 takeover of Fortune 100 IT services provider Perot Systems for $3.9bn, according to online sources.