NTT Data and Dell (News - Alert) are combining their managed IT services businesses in a massive acquisition valued at more than $3 billion. NTT will purchase Dell Services, absorbing its cloud, infrastructure, application and business outsourcing solutions while broadening its brand and global focus.
Clients of both companies will benefit from the deal, with an opportunity to access the offerings of both companies as well as benefit from their respective experience and innovation in delivering IT services. The combined companies will also offer expanded BPO capabilities with a focus on the healthcare and insurance markets.
Other benefits of the acquisition will include an increased infrastructure platform footprint, with Dell’s U.S., U.K. and Australian data centers joining NTT’s (News - Alert) 230 global facilities. The companies will also offer expanded technology resources for providing next-gen application and business process services with the goal of aiding clients as they use IT to improve business performance and outcomes.
"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 John McCain, CEO of NTT DATA. McCain led the acquisition and will take responsibility for directing the combined businesses and offerings. "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."
"I'm extremely proud of Dell Services' solid growth, broad capabilities and deep domain expertise in healthcare & life sciences, banking, financial services and insurance,” said Michael Dell, chairman and CEO of Dell Inc. “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."