Nippon Telegraph & Telephone Data (NTT) Corporation a auxiliary Japan’s largest telecommunications group, has agreed to buy Dell Inc. Information technology services division for $3.05 billion. NTT Data will take on Dell’s 28,000 employees in North America and India. Dell has also been speaking to private equity firms about selling Quest Software, which helps with IT, Management, as well as Sonic-Wall, an e-mail encryption and data security provider, Quest and Sonic-Wall could be worth up to $4 Billion. Dell’s current Information Technolgy services unit was created in 2009. When it acquired system for $ 3.9 Billion this is slightly less than the price it is now asking from NTT Data, but according to Reuters, that is because some of its operations will not be included in the sale. 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
According to Bloomberg data, NTT Data has spent more than 72 Billion Yen buying mostly overseas companies since 2011. Which also controls Japan’s biggest mobile carrier DoCoMo. The group hopes to raise the overseas portion of its revenue to around $22 billion by the year ending March 2018 from around $15 billion in the last fiscal year.
“NTT Data including Cognizant Technology Solutions Crop., Tata Consultancy Services Ltd (TCS) and Atos SE had also previously participated in an auction for Perot Systems that failed to generate a deal”Perot Systems has a large base of U.S. clients in medical and other markets, so it fits NTT Data’s strategy to increase its presence there Hideaki Tanaka, an analyst at Mitsubishi UFJ Morgan Stanley, said before the deal was announced. “NTT Data can win big contracts in Japan.
NTT Data CEO John Mc-Cain Said “In a filing to the Tokyo Stock Exchange(TSE), NTT Data said the purchase will enhance its cloud and BPO services.”
Dell to announce the sale of the company’s IT services unit to Japan’s telecom conglomerate NTT for $3.5 billion
— Todd Smith (@Cisco_Mobile) March 28, 2016