Dell close to selling IT services business to NTT Data

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Dell close to selling IT services business to NTT Data

Dell is reportedly close to wrapping up a deal to sell its IT services business unit to NTT Data for about US$3.5 billion.

On Tuesday, Re/code reported that NTT executives would meet with Dell CEO Michael Dell in New York on Wednesday to formalise the offer.

Sources told CRN US on 16 February that NTT Data had entered into an exclusive 30-day negotiating period with Dell, although at that point it was unclear how close the two companies were to a deal and at what price.

Dell is in the process of acquiring storage system giant EMC and has been looking to sell the IT services business as a way to help pay down the US$49.5 billion in debt Dell will take on as part of that acquisition. Dell is also trying to sell its Quest software business, which it bought in 2012, and its SonicWall security business.

Dell's IT services business unit consists largely of Perot Systems, the IT services company Dell bought in 2009 for US$3.9 billion. Dell is said to have been initially seeking US$5 billion for the business, but has had trouble finding a buyer at that price. Along with NTT Data, potential buyers originally included Tata Consultancy Services, Atos and Cognizant Technology Solutions, with some of those since dropping out of negotiations.

Dell said that once the sale is complete, it expects to rely more on partners to provide systems implementation and other services to customers.

This article originally appeared at crn.com

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