Toshio Iwamoto, NTT DATA
NTT DATA Inc. and Dell Inc. announced March 28 that the two companies have entered into a definitive agreement for NTT DATA to acquire Dell Services’ IT consulting division for more than $3 billion.
“NTT DATA is pleased with the unique opportunity to acquire such high-caliber talent, and a corporate culture that shares common values with NTT DATA, with emphasis on ‘Clients First,’ ‘Foresight,’ ‘Teamwork’ and a commitment to innovation,” NTT DATA Corporation President and CEO Toshio Iwamoto said. “Welcoming Dell Services to NTT DATA is expected to strengthen our leadership position in the IT services market and initiates an important business relationship with Dell.”
“I’m extremely proud of Dell Services’ solid growth, broad capabilities and deep domain expertise in Healthcare & Life Sciences, Banking, Financial Services and Insurance,” Dell Inc. Chairman and CEO Michael Dell said. “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. Together, NTT DATA and Dell Services will be a winning combination for Dell Services customers, team members and partners.”
NTT DATA Inc. CEO John McCain led this transaction and will have overall responsibility for leading the combined business.
“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,” 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. We are confident this transaction will be positive for clients, employees, and shareholders, and will advance our collective vision to be an innovative partner for our clients.”
Dell Services will continue to operate under the leadership of Suresh Vaswani, president of Dell Services, reporting to Dell, until the transaction closes.
“I’m proud of the job the Services leadership team has done in driving and modernizing the business, achieving industry-leading customer satisfaction scores, and winning marquee deals with global companies across industries,” Vaswani said. “This acquisition will create even more value for customers and will benefit employees as they become part of a top ten global IT services business.”
“This deal illustrates the continued evolution of the technology market into more pure-play product and services-oriented firms,” KippsDeSanto & Co. Managing Director Bob Kipps said. “For Dell Services, this deal provides market clarity to its customers and partners. For NTT, it is another big move for them up the IT Services’ league tables and moves them solidly into the mid-tier of the Federal market.”
The transaction is subject to customary closing conditions and regulatory approvals.
Wells Fargo Securities acted as lead financial advisor to NTT DATA, Inc. J.P. Morgan Securities LLC and Credit Suisse Securities (USA) LLC also acted as financial advisors to NTT DATA, Inc.
Citigroup acted as lead financial advisor to Dell Inc.
