In a move to bolster the service business overseas, Japan’s NTT Data Corp has approved to buy Dell Inc.’s IT service operations for a total of $3 billion. The timeline for the completion of the acquisition is not known.
For Dell, the move is a preparatory deal to sell off the non-core assets to raise billions of dollars to acquire software and storage systems provider EMC Corp for $67 billion. This transaction, announced in October 2015, is the largest ever in the technology industry.
As a part of the deal, NTT will absorb Dell’s 28,000 employees from North America and India. The deal will give a bigger foothold for NTT in the United States. In its filing to the Tokyo Stock Exchange, NTT Data said the transaction will expand its cloud and business-process outsourcing (BPO) services.
NTT is currently focusing on business overseas as its domestic market is shrinking. According to Bloomberg News, NTT Data has spent more than 72bn yen buying mostly overseas companies since 2011.
Formerly known as Perot Systems, founded by US’s ex-presidential candidate Ross Perot, Dell’s IT services division is a major provider of technology consulting to hospitals and government departments. Dell acquired Perot Systems in 2009 for $3.9 billion.