Acquisitions · IT services
NTT Data buys Dell's IT services unit for about $3 billion
- Buyer
- NTT Data (via NTT Data International) (Tokyo)
- Target
- Dell Services (Dell Inc.), Plano, Texas
- Value
- $3.055B (estimate) at signing; Dell received about $2.990B in cash at closing
- Status
- Agreed on March 28, 2016 (March 27 in the US); completed on November 2, 2016.
- Date
- 2016-03-28
NTT Data agreed to buy Dell Services, the IT services arm of Dell Inc. based in Plano, Texas, at an estimated price of $3.055 billion. Dell received about $2.990 billion in cash when the deal closed. About 28,000 employees, mainly in North America and India, joined NTT Data.
Why it matters
The deal substantially enlarges NTT Data's North American business and adds cloud and business process outsourcing services, in line with its plan to grow outside Japan.
What NTT Data bought
NTT Data took 100% of Dell Systems Corporation of Texas, Dell Technology & Solutions of Ireland and Dell Services of Singapore, along with other IT assets in North America and elsewhere. The business provides cloud, application and business process outsourcing services to clients in healthcare, manufacturing, hospitality, financial services and the US federal government. Its operating revenue was $2,826 million in the fiscal year that ended on January 31, 2016.
A larger workforce abroad
NTT Data said the deal would take its total staff to more than 100,000, about 70,000 of them outside Japan. It did not disclose how it paid, saying the payment method was confidential under the agreement.
Sources
Kakehashi M&A News home
