Dell selling IT unit to NTT Data for more than $3 billion

NTT Data Corp., the firm which used to hold the monopoly on telecommunications in Japan, announced that it has agreed to buy Dell Inc’s IT services unit for $3 billion.

The order was introduced by the unit of Telephone Corp.

The transaction is subject to customary closing conditions and regulatory approvals. The main focus on the services NTT DATA provide are consulting, application services, business process and IT outsourcing, and cloud-based solutions.

Dell plans to market the split as part of a greater attempt to boost up to $10 thousand from assets that aren’t core to its business’ discretion, Re/code reported earlier.

Second, Dell wanted more than $3.05 billion.

NTT Data said the acquisition would significantly increase its presence in North America and strengthen and expand its global delivery network. But under NTT, Dell Services will benefit from “expanded technology resources” and a network of 230 data centers operated by NTT worldwide, the announcement said. By the year ending March 31, 2015, overseas sales had risen to 450 billion yen, compared with more than 208 billion yen in the 12 months to March 2012.

The firm has been looking for new sources of revenues outside of Japan, which faces a shrinking and rapidly ageing population. Bloomberg noted that NTT offers software and systems for operations such as electronic medical records, surgery management, billing, insurance and other medical-based tech services. Rumor has it that Dell was asking for $5 or $6 billion.

Dell has been in the midst of a turnaround and retooling for several years and went private in 2013 when founder Michael Dell and Silver Lake Partners acquired the company’s outstanding shares. The top honchos of the American computer maker are eyeing to trim some of its debt, potentially $43 billion, to fund its pending cash-and-stock acquisition of EMC Corp, a data storage provider in another deal worth about $60 billion. Perot Systems was an information technology services provider that got its start in 1988 and its name from one of the startup’s primary investors, Ross Perot.