NTT DATA to acquire Dell Services
NTT DATA, Inc., a Japan-based firm with U.S. headquarters in Plano, TX, and Dell Inc. of Round Rock, TX announced on March 28 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. The agreement reflects NTT DATA’s continued focus on expanding its brand and leadership position globally.
“NTT DATA is pleased with the unique opportunity to acquire such high-caliber talent, and a corporate culture that shares common values with NTT DATA, with emphasis on ‘Clients First,’ ‘Foresight,’ ‘Teamwork,’ and a commitment to innovation,” stated Toshio Iwamoto, president and CEO of NTT DATA Corporation.
“Welcoming Dell Services to NTT DATA is expected to strengthen our leadership position in the IT Services market and initiates an important business relationship with Dell.”
Through this transaction NTT DATA and Dell Services clients will have access to the expanded capabilities and industry offerings of the combined organization, delivering upon a consistent theme that is inherent to the NTT DATA brand: placing clients’ needs first, fostering innovation, and driving accelerated results through its global reach and cost-efficient solutions.
“I’m extremely proud of Dell Services’ solid growth, broad capabilities and deep domain expertise in Healthcare & Life Sciences, Banking, Financial Services and Insurance. Our investments in digital services, application modernization, tools, automation and ‘as-a-service’ models, have enabled Dell Services customers to simplify their IT environment, empower their workforce, engage their customers and grow,” said Michael Dell, chairman and chief executive officer of Dell Inc. “Together, NTT DATA and Dell Services will be a winning combination for Dell Services customers, team members and partners.”
When the transaction is completed, clients and employees of Dell Services and NTT DATA will also benefit from:
- A significant expansion of BPO capabilities, particularly in healthcare and insurance industries.
- Increased infrastructure platform, with the Dell Services data centers in the U.S., U.K., and Australia joining NTT’s 230 data centers around the globe.
- Expanded technology resources to provide next-generation application and business process services to help clients leverage IT to drive business performance and outcomes.
John McCain, CEO of NTT DATA, Inc., led this transaction and will have overall responsibility for leading the combined business.
“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,” said Mr. McCain. “Dell Services is a very well-run business and we believe its employee base, long-standing client relationships, and the mix of long term and project-based work will enhance our portfolio. We are confident this transaction will be positive for clients, employees, and shareholders, and will advance our collective vision to be an innovative partner for our clients.”
Dell Services will continue to operate under the leadership of Suresh Vaswani, president of Dell Services, reporting to Michael Dell, until the transaction closes.
“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. “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.”
The transaction is subject to customary closing conditions and regulatory approvals.
Wells Fargo Securities acted as lead financial advisor to NTT DATA, Inc. J.P. Morgan Securities LLC and Credit Suisse Securities (USA) LLC also acted as financial advisors to NTT DATA, Inc.
Citigroup acted as lead financial advisor to Dell Inc.
Source: NTT Data