Japan-based NTT Data To Buy Dell Services For $3 Billion
By Christine Kern, contributing writer
NTT wants to deepen its footprint in North America
Japan-based NTT Data has announced it plans to buy Dell Services for $3 billion in an attempt to deepen its footprint in North America, Bloomberg reports. NTT provides electronic health records, surgery management, billing, and insurance claims software and systems.
Dell Services was acquired from Perot Services for $3.9 billion in 2009, and provides tech consulting for healthcare and insurance industries.
TechCrunch reports the deal will expand NTT’s business process outsourcing capabilities, particularly in healthcare and reimbursement, and broaden the infrastructure platform by adding Dell Service’ U.S., U.K., and Australian data centers to NTT’s 230 data centers worldwide. It will also increase NTT’s tool kit for providing next-generation BPO services. The acquisition will create “a rich portfolio” of IT and digital business solutions for healthcare, financial services, insurance, and the public sector.
“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,” Toshio Iwamoto, President and CEO of NTT Data Corp, said in a statement. “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. 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,” said Michael Dell, chairman and chief executive officer of Dell Inc. “Together, NTT DATA and Dell Services will be a winning combination for Dell Services customers, team members, and partners.”
“There are few acquisition targets that provide this type of unique opportunity to increase our competitiveness and the depth of our market offerings,” John McCain, CEO of NTT Data, said in a statement. McCain will oversee operations of the combined business.
About 28,000 Dell employees will be added to NTT’s global workforce, boosting it over 100,000, according to Healthcare IT News. The deal is subject to regulatory approvals.