Looking to shed debt ahead of its $67 billion acquisition of EMC Corp., Dell Inc has agreed to sell its IT services division to Japan-based NTT Data Corp. for just over $3 billion, the companies said Monday.
Dell's IT services division, known as Dell Services, was formerly known as Perot Systems, a company founded by former U.S. presidential candidate Ross Perot. Dell bought it in 2009 for $3.9 billion.
The move would enable Round Rock-based Dell Inc., which is the largest private employer in Central Texas, to raise cash to help make its EMC deal work.
NTT Data said the acquisition would significantly increase its presence in North America and strengthen and expand its global delivery network.
“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 said in a written statement.
Dell's planned $67 billion deal for data storage giant EMC, which is based in Hopkinton, Mass., a suburb of Boston, was announced in October. It would be the biggest IT sector buyout ever if completed.
The EMC deal is so big that some analysts have questioned whether Dell Inc. has the funds to really pull it off, and EMC's stock price has dropped since the deal was announced.
Dell Inc. and EMC executives have reassured investors, customers and employees that the deal is definitely happening.
Update: Analyst says Dell's latest move toward the EMC deal is 'like python eating the buffalo.'
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