<p>IT giant Dell on Monday announced selling its non-core IT consulting division to Japan’s NTT Data Corporation for $3.5 billion.<br /><br /></p>.<p>The move is widely seen as Dell’s efforts to bring down $43 billion debt accumulated after the acquisition of data storage company EMC Corp for a record $67 billion in October, last year.<br /><br />Technology services company NTT Data said the acquisition will give the company greater access to North America and additional manpower of 28,000 to execute projects in healthcare IT, insurance and financial service consulting.<br /><br />Besides expanding IT and BPO solution capabilities, the merger will increase NTT’s infrastructure platform, with its present 230 data centres, expand its presence in the US, the UK and Australia through Dell Services.<br /><br />In a letter to employees, Dell Services President Suresh Vaswani said the company signed a definitive agreement under which NTT Data will acquire Dell Services, including Dell Services Federal Government. “Under the terms of the stock and asset purchase agreement executed by NTT Data and Dell, the former will acquire Dell Services through a complex combination of equity and asset transfers,” he said.<br /><br />NTT Data Corp President and CEO Toshio Iwamoto said the company is pleased with the unique opportunity to acquire such high-caliber talent, and a corporate culture that shares common values.<br /><br />Dell Chairman and CEO Michael Dell said he is extremely proud of Dell Services’ solid growth and deep domain expertise. “Our investments in digital services, application modernisation, tools, automation and ’as-a-service‘ models, have enabled Dell Services customers to simplify their IT environment,” said Dell.<br /><br />Even though Dell wanted to get $5 billion during his initial stages of negotiation, he was compelled to sell it for $3.5 billion. “Dell Services will have to renew few of its big accounts this year, and if it is not renewed will have bad business implications,” analysts, who didn’t want to be quoted, told Deccan Herald.<br /> </p>
<p>IT giant Dell on Monday announced selling its non-core IT consulting division to Japan’s NTT Data Corporation for $3.5 billion.<br /><br /></p>.<p>The move is widely seen as Dell’s efforts to bring down $43 billion debt accumulated after the acquisition of data storage company EMC Corp for a record $67 billion in October, last year.<br /><br />Technology services company NTT Data said the acquisition will give the company greater access to North America and additional manpower of 28,000 to execute projects in healthcare IT, insurance and financial service consulting.<br /><br />Besides expanding IT and BPO solution capabilities, the merger will increase NTT’s infrastructure platform, with its present 230 data centres, expand its presence in the US, the UK and Australia through Dell Services.<br /><br />In a letter to employees, Dell Services President Suresh Vaswani said the company signed a definitive agreement under which NTT Data will acquire Dell Services, including Dell Services Federal Government. “Under the terms of the stock and asset purchase agreement executed by NTT Data and Dell, the former will acquire Dell Services through a complex combination of equity and asset transfers,” he said.<br /><br />NTT Data Corp President and CEO Toshio Iwamoto said the company is pleased with the unique opportunity to acquire such high-caliber talent, and a corporate culture that shares common values.<br /><br />Dell Chairman and CEO Michael Dell said he is extremely proud of Dell Services’ solid growth and deep domain expertise. “Our investments in digital services, application modernisation, tools, automation and ’as-a-service‘ models, have enabled Dell Services customers to simplify their IT environment,” said Dell.<br /><br />Even though Dell wanted to get $5 billion during his initial stages of negotiation, he was compelled to sell it for $3.5 billion. “Dell Services will have to renew few of its big accounts this year, and if it is not renewed will have bad business implications,” analysts, who didn’t want to be quoted, told Deccan Herald.<br /> </p>
