Dell Ditches IT Consultancy Arm for $3B

NicoleMotta - March 28, 2016 - 12:08 PM

Dell Ditches IT Consultancy Arm for $3B

On Monday, Japan's NTT Data announced that it has agreed to buy Dell's IT consultancy division for $3.05 billion.

"NTT DATA, Inc. and Dell Inc. announced [that] they have entered into a definitive agreement for NTT DATA to acquire Dell Services, an IT services provider recognized for its depth in vertical industries, and for its offerings around infrastructure services, cloud services, application services, and business process outsourcing," said NTT Data in a press release on the acquisition. "Through this transaction, NTT DATA and Dell Services clients will have access to the expanded capabilities and industry offerings of the combined organization." The deal helps NTT Data to expand its reach into new regions, including the US. Dell Services will continue to operate under its current leadership, until the transaction closes, after which John McCain, CEO of NTT Data, will have "overall responsibility for leading the combined business."

"I'm proud of the job the Services leadership team has done in driving and modernizing the business, achieving industry-leading customer satisfaction scores, and winning marquee deals with global companies across industries," said Suresh Vaswani, President of Dell Services, in a statement on the matter. "This acquisition will create even more value for customers, and will benefit employees as they become part of a Top Ten global IT services business." Even though Dell sold Services for $3 billion, it was hoping to get more for the IT consultancy branch. According to reports, Dell was looking for between $5 and $6 billion, as it hopes to help finance the debt needed for its upcoming EMC acquisition, which is expected to close in October, after a vote in May.

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