NTT Data on Monday announced in a regulatory filing that it has agreed to purchase Dell’s IT services business for just over US$3 billion.
Dell selling its IT services business to NTT is really a win-win for both companies. The Japanese company is looking for growth opportunities outside its domestic market. Dell’s IT services unit is a well run operations. Given the high quality customer base the risk for NTT is manageable. It fits well with NTT’s core competence. This new deal is in line with the purchase of Dimension Data Holding PC and Keane Inc a few years back.
On the other hand, Dell is getting ready to complete its acquisition of EMC as it cleared regulatory hurdles in the US. Pre- and post merger, Dell has to deleverage the company in order to handle the 59 billion dollar acquisition of EMC. Divesting from its IT business is a first step in a series of moves to improve the balance sheet.
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