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NTT Data Announces Acquisition Of Dell Services To Strengthen Its Competitive Positioning

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NTT Data Announces Acquisition Of Dell Services To Strengthen Its Competitive Positioning

Nippon Telegraph & Telephone Corp (ADR) (NYSE: NTT), better known as NTT Data, announced on Monday it has reached an agreement with Dell Inc. (NASDAQ: DELL) to acquire Dell Services, an IT services provider that focuses on infrastructure services, cloud services, application services and business process outsourcing.

NTT Data stated that the acquisition will "significantly" increase its North American presence and expand its global delivery network while also bolstering its infrastructure services capabilities.

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CNBC noted that the price tag on the deal is just north of $3 billion and Dell may use the proceeds to partially fund its pending acquisition of EMC Corp.

"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 in the company's press release. "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."

Shares of NTT Data showed no trades early Monday morning and the stock has gained over 11 percent since the start of 2016 and more than 40 percent over the past year.

Image Credit: Public Domain

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