- Dell announced Monday that it has agreed to sell its IT services subsidiary, Dell Services, to NTT Data for $3.06 billion.
- NTT Data, the systems integration unit of Tokyo-based Nippon Telegraph and Telephone, said it still needs regulatory approval for the deal.
- Dell Services is formerly Perot Systems, a company founded by Ross Perot. In light of the planned EMC acquisition, Dell saw some of the unit's capabilities as redundant.
Dell purchased Perot Systems for $3.9 billion in 2009, so the $3.06 billion sale to NTT comes at a loss of more than $800 million. But Dell has the long game in mind–it’s trying to raise money as it prepares to complete its $67 billion purchase of data storage provider EMC. Selling Dell Services allows the company to reduce some of the $43 billion in debt it is taking on to fund the EMC purchase.
Dell Services primarily provides technology consulting services to hospitals and government departments. For its part, NTT Data said buying Dell Services will allow it to deepen its roots in North America, where it wants to expand its focus in healthcare IT, insurance and financial services consulting.
Dell announced it would merge with data storage company EMC in October of last year in a record $67 billion deal–the largest deal ever between two technology companies. Though the deal is not yet finalized, it has passed several antitrust hurdles and is the companies expect to finalize it this year.