TOKYO?Japan's NTT Data Corp. said Monday it has agreed to buy Dell Inc.'s information-technology-services division for $3.05 billion, its latest effort to seek growth overseas.
The deal would mark one of the largest foreign buyouts in recent years for NTT Data parent Nippon Telegraph & Telephone Corp., whose operations span fixed-line and mobile telecommunications as well as IT services.
Faced with sluggish growth at home, many Japanese companies are turning to overseas acquisitions.
The move would enable Dell, which is in the process of acquiring storage vendor EMC Corp. for tens of billions of dollars, to raise cash to help finance that deal. NTT Data said the acquisition would increase its presence in North America significantly, and strengthen and expand its global delivery network.
"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," NTT Data CEO John McCain said.
"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," he said.
The group has said it hopes to raise the overseas portion of its revenue to around $22 billion by the year ending March 2018, from around $15 billion in the last fiscal year.
Previously, in 2010, NTT acquired South African IT company Dimension Data Holdings PLC for $3.2 billion and U.S. IT-services firm Keane Inc. for an estimated $1.4 billion. Dell's IT-consulting division, formerly known as Perot Systems, was founded by former U.S. presidential candidate Ross Perot and sold in 2009 to Dell for $3.9 billion.
Dell's parent company, Denali Holding Inc., is looking to sell off a number of Dell assets to lighten its massive debt load as it marches toward the conclusion of its $59 billion EMC acquisition.
But the $3.05 billion price tag for its Dell services unit is lower than some had expected, a sign of recent uncertainty in the technology sector and of the challenges facing traditional technology-service businesses as companies increasingly purchase their computing power over the Internet from such companies as Amazon.com Inc.
The EMC transaction recently cleared regulatory hurdles in the U.S. and Europe, and is expected to be voted on by the company's shareholders by early May.
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