Japanese System Integration Company
and subsidiary of Nippon Telephone and Telegraph, NTT Data, has closed the acquisition of Dell Services
. NTT had entered into an agreement in March
earlier this year to acquire Dell’s Perot Systems, its information technology services for $3.06 billion. The sale was expected to help Dell’s $67 billion acquisition of data storage provider EMC.
According to the company, its newly acquired business on an interim basis will be called NTT Data Services, which will expand its ability to deliver insights, solutions and outcomes, that lead to tangible business results for clients. John McCain, CEO, NTT Data, will take up the overall responsibility for leading the business.
“Welcoming Dell Services into NTT Data is a milestone acquisition in our effort to partner with clients as they navigate the digital disruptions in today’s markets,” said Toshio Iwamoto, President and CEO, NTT Data Corporation.
“As a top 10 global business and technology services provider, we have been aggressively expanding our international business, boldly pursuing growth as a ‘Global IT Innovator.’ The acquisition of Dell Services is another step toward achieving our vision of becoming a top five global IT services leader.”
Currently NTT Data Services claims to have been designed to modernize business and technology. Its expanded capabilities and scale include:
- Increased strength in industry consulting and vertical solutions in segments such as healthcare and life sciences, financial services and insurance, public sector, manufacturing, and commercial industries
- Vertically-focused Business Process Outsourcing and Business Process-as-a-Service solutions
- An expanded, full lifecycle services in applications and infrastructure
- Accelerated innovation and investments in additional areas including digital, cloud, automation and analytics
- Setting up a vast global delivery network with an expanded global presence, particularly in North America, Europe, India, Asia and the Middle East
McCain said, “We have extremely complementary portfolios and less than 10 percent client overlap. More importantly, both companies have always had an unwavering dedication to client success. Our clients and employees are very enthusiastic about the opportunities this acquisition creates.”
“With our combined expertise, services and resources, there’s simply no better team to enable clients to stay a step ahead in highly competitive markets.”
“I’m very glad to see this business, which has made great strides, find such a strong fit in NTT DATA where it will be able to continue its momentum,” said Suresh Vaswani, President, NTT DATA Services, formerly Dell Services. “I will remain in my current role to lead the business through the end of January 2017, to ensure a smooth transition through its current fiscal year.”
The organizational structure will be aligned for a vertically-oriented go-to-market strategy, with key leaders from effective April 1, 2017. The financial advisory was led by Wells Fargo Securities, with JP Morgan Securities and Credit Suisse Securities, for NTT Data. Citigroup acted as lead financial advisor to Dell.