Japanese company buys Dell Services firm

By Barry Eitel

SAN FRANCISCO

Computer builder Dell announced Monday that it would sell its information technology services subsidiary to Japanese firm NTT Data for $3.06 billion.

Dell Services was formerly known as Perot Systems, a company founded by billionaire former presidential candidate Ross Perot.

Dell bought it for $3.9 billion in 2009, so the sale to NTT Data represents a loss of roughly $800 million.

Dell made the sale Monday in order to shave some of the debt it will have once it purchases data storage company EMC.

Dell will have approximately $43 billion in debt once it acquires EMC for $60 billion in cash and stock, one of the largest tech industry deals in history.

“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 CEO Michael Dell said in a statement Monday.

“Together, NTT DATA and Dell Services will be a winning combination for Dell Services customers, team members and partners.”

Already one of the biggest tech companies in the world, NTT Data is buying Dell Services in order to grow a much larger footing in the North American market and to move further into the health care and insurance industries.

NTT Data currently operates in more than 40 countries.

“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,” John McCain, the man who led the sale and the new leader of the combined companies, said in a statement. “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.”

Dell is expected to finish its purchase of EMC between July and October.