Japan-based NTT is working on a deal to buy Dell's IT services business for $3.05 billion as reported on CIO Today. The deal is certainly expected to expand the global IT services portfolio of NTT Data through its mix of long-term and project-based work.
If the sale is closed, this will aid NTT Data grow its business in the US. Another Japanese telecom giant like SoftBank, NTT has expanded internationally by way of a series of acquisitions and investments, most notably in India and in the U.S. as cited on TechCrunch.
According to reports, this transaction is not yet NTT Data's largest. Meanwhile, Dell will reap a portion of the reported $60 billion it needs to borrow to help take EMC private and then bring it into its fold.
"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, NTT Data CEO, said today in a statement while announcing the Dell Services deal.
On top of that, the fusion of Dell and EMC will indeed engender an "enterprise solutions powerhouse" that cater business customers with a wide array of top quality, next-generation IT services such as digital transformation, hybrid cloud and software-defined data centers. That deal is expected to close between May and October this year.
But even before NTT Data completes this major acquisition, Dell Services will undoubtedly continue to be operated by business president Suresh Vaswani. "This acquisition will create even more value for customers and will benefit employees as they become part of a top ten global IT services business," Vaswani said in a statement.
Dell also looks forward to offload 2 of its other businesses: SonicWall and Quest Software for a sum of $4 billion. The company's debt from the EMC Corp. deal, which is posed for approval from EMC shareholders, is $43 billion.
