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$3bn for an IT services outfit? Bloody Dell!

NTT Data pays up for Services branch of beleaguered PC giant

Michael Dell, photo: Dell

NTT Data says it will be acquiring the IT services branch of Dell in a reported $3bn deal.

The Japanese IT services giant said it would be taking on Dell Services as part of a push to expand its reach globally as a provider. In particular, NTT Data says that the deal will boost its presence in North America and extend its reach into the healthcare, finance, insurance and public sector IT markets.

According to Reuters, the deal is worth $3.05bn to Dell, which recently took the plunge on a nearly $67bn acquisition of storage giant EMC.

"I'm extremely proud of Dell Services' solid growth, broad capabilities and deep domain expertise in Healthcare & Life Sciences, Banking, Financial Services and Insurance," Michael Dell said of the company he just sold.

"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."

Dell Services, the former Perot Systems business Dell purchased in 2009 from business mogul and former presidential candidate Ross Perot for $3.9bn, has long been linked with talks of a sale or acquisition as Dell continues to look for ways to drum up the cash needed to buy EMC.

Last year, reports surfaced that Dell was hoping to get as much as $5bn in a sale of Perot/Dell Services, suggesting that the reported $3bn NTT is shelling out will be a relative bargain.

Dell, meanwhile, would come out of the deal down roughly $800m on what it originally paid for the business.

No target date was given for the deal between NTT and Dell to be finalized. ®

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