Nippon Telegraph and Telephone Corp. is in final talks to buy Perot Systems, an information technology services affiliate of U.S. computer giant Dell Inc., sources said Tuesday. The deal is worth over ¥400 billion.
The purchase would help NTT strengthen its operations overseas at a time when growth in Japan is expected to slow as the population shrinks, the sources said.
Subsidiary NTT Data Corp. is planning to buy Perot Systems with its parent’s financial assistance, according to the sources. The plan is expected to be finalized by the end of this month, following an investment committee of representatives from NTT group companies to be held next week.
Perot Systems, founded by billionaire businessman and onetime presidential candidate Ross Perot, provides IT consulting services to hospitals and government institutions. It was purchased by Dell in 2009.
Overseas sales accounted for some 14 percent of NTT’s overall sales in the year through March 2015.
The company has been looking for potential mergers and acquisitions abroad, hoping to increase overseas sales by 50 percent to $22 billion in the year through March 2018.
Japanese telecom companies have been taking steps across the board to boost overseas revenue. NTT rival SoftBank Group Corp. acquired U.S. mobile carrier Sprint Corp., while fellow carrier KDDI Corp. has launched mobile phone services in Myanmar.