Dell is selling its IT services subsidiary, Perot Systems, to NTT Data of Japan for $3.1 billion, according to reports. The Dell holding provides IT services to the medical, government and other vertical markets.
The deal was disclosed in an NTT filing with the Tokyo Stock Exchange.
Dell purchased Perot Systems, founded by former presidential candidate and businessman Ross Perot, in 2009, four about $4 billion. Dell, based in Austin, Texas, is in the process of taking over EMC, which it agreed to buy last year in a deal worth upwards of $60 billion.
Dell Founder Michael Dell said the combined companies will be well positioned to serve enterprise customers in six key areas: digital transformation, software-defined data centers, converged infrastructure, hybrid cloud, mobile and security.
Roughly half of EMC’s market value is tied to its stake in VMWare, a Silicon Valley company that makes software designed to enable multiple operating systems and applications to share one physical server. VMWare will continue to operate as an independent, publicly traded company.
According to Reuters, “the sale will also offer NTT Data, one of the world’s largest technology services companies, a bigger foothold in the United States, where it is looking to expand in health care IT, insurance and financial services consulting.”
NTT Data was formerly a part of the state-controlled telecom company Nippon Telegraph and Telephone. The two companies split in the 1980s when NTT was privatized.
“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,” NTT Data CEO John McCain told The Wall Street Journal. “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.”
