Breaking Viewpoint - NTT DATA Fuels Global Ambitions by Buying Dell Services for US$3.05 billion

30 Mar 2016
by Abhishek Singh, Nitish Mittal

Executive Summary

On March 28, 2016, Dell has hived off its IT infrastructure, application, and business process services business, Dell Services, to NTT DATA for US$3.05 billion. Dell Services will continue to operate under the leadership of Suresh Vaswani, President of Dell Services, reporting to Michael Dell, until the transaction closes, sometime in the late summer of 2016. This sale completes the first of many such moving pieces as Dell looks to help finance the EMC mega deal announced in October 2015. This viewpoint provides an analysis along the following lines:

  • Facts about the acquisition
  • The context behind the acquisition and driving rationale
  • The butterfly effect set in motion by the Dell-EMC deal
  • Implications for NTT DATA’s global ambitions and Dell’s future
  • Implications for the broader market
  • Challenges going forward
 

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