A subsidiary of Japan-based conglomerate Nippon Telegraph & Telephone (NYSE: NTT) has agreed to purchase the information technology services and consulting business of Dell for $3.05 billion as part of a push to expand further into new geographic markets such as the U.S.
The companies did not disclose a timeline for the transaction’s closure and said Tokyo-headquartered NTT Data will add more than 230 of Dell’s data centers.
Systems integrator NTT Data, which bases its U.S. headquarters in Plano, Texas, has targeted the healthcare and insurance sectors in the U.S. as potential growth markets and also seeks to expand its business process outscourcing work.
Japan’s government owns roughly one-third of NTT’s stock, which has risen 5.76 percent since details of the negotiations were reported by Japan-based news agency Nikkei on March 8 and the company’s market capitalization was $93.1 billion as of Thursday’s close.
Dell purchased the former Perot Systems business from former presidential candidate Ross Perot in 2009 for $3.9 billion to form the nucleus of an IT services unit that includes customers in the public sector and healthcare industries.
Dell secured close to $777.4 million in unclassified federal contracts during the government’s 2014 fiscal year, according to Bloomberg Government.
NTT Data’s federal business is headquartered in Tysons Corner, Virginia and provides IT services to the departments of Defense and Homeland Security, as well as agencies in the law enforcement, intelligence, civilian and court system.
Dell aims to close its $67 billion acquisition of EMC later in the second quarter and will use proceeds from the transaction with NTT to finance that deal.