Japan’s NTT Data has agreed to buy Dell’s IT consulting division for more than $3bn (£2.1bn) to expand in North America and bolster its services business.
The move will allow US computer-maker Dell to trim some of the $43bn in debt it is taking on to fund its pending cash-and-stock acquisition of data storage provider EMC, a deal worth close to $60bn.
The Japanese company said it would pay around $3.05bn, an amount that excludes debt and unspecified advisory fees. The sale will also offer NTT Data, one of the world’s largest technology services companies, a bigger foothold in the US, where it wants to expand in healthcare IT, insurance and financial services consulting.
Formerly known as Perot Systems, Dell’s IT services division is a major provider of technology consulting to hospitals and government departments. Founded in 1988 by former US presidential candidate Ross Perot, it was acquired by Dell in 2009 for $3.9bn.
However, Dell has since divested some of the unit’s operations and integrated others, which it is not including in the sale. Some of the unit’s capabilities were seen by Dell as redundant after the acquisition of EMC.
Dell has also been speaking to private equity firms about selling Quest Software, which helps with information technology management, as well as SonicWall, an email encryption and data security provider, Reuters has reported. Together Quest and SonicWall could be worth up to $4bn.