NTT snaps up Dell's IT services business, deepens North American presence

NTT Data is purchasing Dell's IT outsourcing unit for $3.05 billion, enabling it to immediately deepen the Japanese provider's presence in North America.

Dell Services, which operated as an independent company once known as Perot Services, established a strong customer base across key industry segments including financial services, health care and public sector agencies.

In 2009, Dell acquired Perot Systems, which was founded by 1992 presidential candidate Ross Perot in 1988, for $3.9 billion.

Upon completion of the deal, John McCain, who led the transaction, will oversee the combined business.

Suresh Vaswani, the president of Dell Services and a 26-year veteran of the Indian IT provider Wipro, is expected to leave the company after closing, reports re/code, citing people close to the deal. In the meantime, Vaswani will continue to report to Michael Dell.

NTT said that the acquisition of Dell Services will produce benefits for each customer set. Among the many benefits will be an expansion of BPO capabilities, a new set of data centers in the U.S., U.K. and Australia, and a set of expanded technology resources.

For Dell, the sale is part of what could be a broader sale of assets as it looks to fund its pending acquisition of storage provider EMC. Under the terms of the EMC deal, Dell said it would borrow more than $50 billion to take EMC private.

Another asset Dell is considering selling is Quest Software, which Dell acquired in 2012 for $2.4 billion. The company plans to raise as much as $10 billion to help pay down expected debt.

The Dell deal is subject to customary closing conditions and regulatory approvals.

For more:
- re/code has this article
- see the release

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