News: Acquisition will help strengthen NTT Data’s presence in North America.
Dell has finally had some success in selling off part of its business as it continues to try and raise money to fund the acquisition of EMC.
The sale of Dell’s IT services branch Perot Systems is said to be worth $3.05bn, marking a loss on the $3.9bn that Dell paid for the company in 2009.
The company making the acquisition is Japanese IT services firm NTT Data, which said that it hopes to boost its presence in North America.
NTT Data’s acquisition of Perot Systems provides a route into the North America market and extends its reach into healthcare, finance, insurance, and public sector IT markets, all of which Perot has contracts in.
John McCain, CEO of NTT Data 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."
The Japanese company, which is the IT and consulting unit of Nippon Telegraph & Telephone corporation, has spent around $634 million buying companies since 2011, the majority of which has been spent on buying companies abroad.
The acquisitions abroad have come as sales of services in Japan have slowed down, forcing a global move that has seen sales rise to 450bn yen by the year ended 31st March, 2015, compared with around 208bn yen in the 12 months to March 2012.
Dell had been reported as seeking $5bn from the sale of Perot Systems with companies such as NTT Data rivals Tata Consultancy Services and Cognizant said to be in the bidding.
Michael Dell, CEO, Dell, said of Perot Systems: "I’m extremely proud of Dell Services’ solid growth, broad capabilities and deep domain expertise in Healthcare & Life Sciences, Banking, Financial Services and Insurance."
Dell has been seeking to raise as much as $10bn through sales of its non-core assets with servers and other hardware assets set to remain untouched.
Dell said: "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."
The transaction is subject to customary closing conditions and regulatory approvals, no finalising date has been given.