Comments Off

Dell planning to sell IT services unit to Japan’s NTT Data: Sources

Dell_Ventures
Dell Inc is set to announce an agreement on Monday to sell its non-core information technology consulting division to Japan’s NTT Data Corp for $3.5 billion, people familiar with the matter said on Sunday.
The move will allow US computer maker Dell to trim some of the $43 billion in debt it is taking on to fund its pending cash-and-stock acquisition of data storage provider EMC Corp, a deal worth close to $60 billion.
The sale will also offer NTT Data, one of the world’s largest technology services companies, a bigger foothold in the United States, where it is looking to expand in healthcare IT, insurance and financial services consulting.
Announcement of any agreement is subject to NTT Data’s board approving the deal when it meets in Tokyo, the people said, asking not to be identified because the transaction is not yet official.
Dell has also made progress in syndicating $10 billion of its financing package for the EMC acquisition dubbed ‘term loan A’, the people said. This is expected to be increased in size by $500 million to $750 million due to strong demand, with the extra money to be used to downsize some of the more expensive tranches of the remaining $33 billion in financing, the people added.
The group of banks participating in the term loan A has been expanded from the original eight underwriters to 25, with more expected to join before the syndication is completed in the next week, the people said.
Dell declined to comment, while NTT Data did not immediately respond to a request for comment. Reuters had reported first on February 12 that NTT Data was in exclusive talks to buy Dell’s IT services unit.

Filed in: News

Related Posts

Bookmark and Promote!

© 2016 ItVoice | Online IT Magazine India. All rights reserved.
Powered by IT Voice