NTT buys Dell’s IT services business for $3bn

29 March 2016 | Alan Burkitt-Gray

NTT Data, the Japanese operator’s systems integration unit, is to buy the former Perot Systems from Dell for $3.06 billion as part of a major expansion into cloud services for vertical industries.

Dell announced in February that NTT was in exclusive negotiations to buy the unit, which it bought in 2009 for $3.9 billion and was hoping to sell for $5 billion.

Toshio Iwamoto, president and CEO of NTT Data, said: “Welcoming Dell Services to NTT Data is expected to strengthen our leadership position in the IT services market and initiates an important business relationship with Dell.”

Perot Systems, now called Dell Services, will help NTT Data expand into the services market. According to Bloomberg the company has already spent $550 million buying operations outside Japan since 2011.

Michael Dell, chairman and CEO of the company he founded, said: “Together, NTT Data and Dell Services will be a winning combination for Dell Services’ customers, team members and partners.”

Perot Systems was founded by former US presidential candidate Ross Perot in 1988. Earlier in his career he set up EDS, which General Motors bought in 1984 and was bought by HP in 2008.

Dell acquired the company in order to expand beyond the personal computer business. Now it is redirecting its efforts and is aiming to buy storage company EMC.

In a statement, NTT Data said Dell Services was “an IT services provider recognised for its depth in vertical industries and for its offerings around infrastructure services, cloud services, application services, and business process outsourcing”.

Dell Services has data centres in the US, UK and Australia that will join NTT Data’s existing network of 230 data centres.