Japan’s NTT Data announced Monday it will acquire Dell Services — Dell Inc.'s information technology consulting division — for $3.05 billion. The move would allow the Japanese telecommunications firm to expand its business in North America and also help Dell raise money for its $67 billion takeover of data storage firm EMC.
“NTT DATA is pleased with the unique opportunity to acquire such high-caliber talent, and a corporate culture that shares common values with NTT DATA, with emphasis on ‘Clients First,’ ‘Foresight,’ ‘Teamwork,’ and a commitment to innovation,” Toshio Iwamoto, president and CEO of NTT DATA Corporation, said in a statement. “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.”
Under the terms of the deal, announced Monday in a filing at the Tokyo Stock Exchange, NTT Data — a subsidiary of the Japanese telecommunications giant Nippon Telegraph & Telephone Corp. — will also take on Dell Services’ 28,000 employees located mainly in North America and India.
NTT did not specify a date for when it would acquire the Dell unit.
The acquisition, which is subject to regulatory approval, would be one of NTT Data’s largest ever overseas investments. According to Bloomberg, the Japanese company has spent more than 72 billion yen ($634 million) buying companies since 2011, including nearly 62 billion yen for overseas acquisitions.
Prior to that, in 2010, NTT acquired South African information technology company Dimension Data Holdings for $3.2 billion and the U.S. IT-services firm Keane Inc. for an estimated $1.4 billion.