NTT Data Closes Acquisition of Dell Services for $3.1 BillionTo be called NTT Data Services
This is a Press Release edited by StorageNewsletter.com on 2016.11.04
The newly acquired business, which on an interim basis will be called NTT DATA Services, expands NTT DATA's ability to deliver insights, solutions and outcomes that lead to tangible business results for clients.
"Welcoming Dell Services into NTT DATA is a milestone acquisition in our effort to partner with clients as they navigate the digital disruptions in today's markets," said Toshio Iwamoto, president and CEO, NTT DATA Corporation. "As a top 10 global business and technology services provider, we have been aggressively expanding our international business, boldly pursuing growth as a 'global IT innovator.' The acquisition of Dell Services is another step toward achieving our vision of becoming a top five global IT services leader."
The combined company represents comprehensive services portfolio designed to modernize business and technology.
NTT DATA's expanded capabilities and scale include:
• Increased strength in industry consulting and vertical solutions in major segments, including healthcare and life sciences, financial services and insurance, public sector, manufacturing and commercial industries
• Vertically-focused business process outsourcing and business process-as-a-service solutions
• Expanded, full lifecycle services in applications and infrastructure
• Accelerated innovation and investments in additional areas including digital, cloud, automation and analytics
• Vast global delivery network with an expanded global presence, particularly in North America, Europe, India, Asia and the Middle East
• Together with NTT Group, one of the world's largest data center footprints with more than 240 data centers globally
John McCain, CEO, NTT DATA, Inc., will have overall responsibility for leading the business.
"With our combined expertise, services and resources, there's simply no better team to enable clients to stay a step ahead in highly competitive markets," he said. "We have extremely complementary portfolios. More importantly, both companies have always had an unwavering dedication to client success. Our clients and employees are very enthusiastic about the opportunities this acquisition creates."
"I'm very glad to see this business, which has made great strides, find such a strong fit in NTT DATA where it will be able to continue its momentum," said Suresh Vaswani, president, NTT DATA Services, formerly Dell Services. "I will remain in my current role to lead the business through the end of January 2017, to ensure a smooth transition through its current fiscal year."
The organizational structure will be aligned for a vertically-oriented go-to-market strategy, with key leaders.
Wells Fargo Securities acted as lead financial advisor to NTT DATA, Inc. J.P. Morgan Securities LLC and Credit Suisse Securities (USA) LLC also acted as financial advisors to NTT DATA, Inc. Citigroup, Inc. acted as lead financial advisor to Dell Inc.
"Dell Services is the fabric underneath that allows my business to operate effectively, efficiently, and productively ... I really feel that the NTT DATA leadership understand the services business and delivering services to their customers. I think the transition for Dell Services into NTT DATA will allow them to be in a business that's 100% focused in IT services," said Greg Moore, VP infrastructure, KB Home.
"I've thought a lot about the transition of Dell Services to NTT DATA and I was thrilled. There are a lot of other companies I had concerns about, but not NTT DATA… The last transition was completely seamless. The same people were engaged in the same hand in glove activity. It was a nonevent," said Deborah Norton, CIO, Harvard Pilgrim Health Care.
"The relationship between what's now Dell and Harvard Pilgrim goes back 17 years. That's longer than a lot of marriages. There's a tremendous amount of confidence and a tremendous amount of personal investment," said Bob Trombly, deputy CIO, Harvard Pilgrim Health Care.
"Dell Services provides my infrastructure capability and NTT DATA provides my application support. So I think we are in a unique position because we have both companies here today, and I'm very reliant on both of them. When I have big projects, they have knowledgeable people across the globe that can get the work done. I couldn't be that nimble if I had a full time employee base, so the flexibility and capacity is a big benefit of our relationship. When Dell Services goes to NTT DATA, I would expect that to continue," said Lisa Ryan, CIO, MKS Instruments.