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NTT Data preparing to buy Dell’s Perot Systems

JIJI

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.

  • KV Anna

    The Perot unit was doing good until 2011 however after the “invasion” of ex Wipro executives, the company is in shambles. Their people strength is consistently eroding with higher attrition. Heard that they doled out one modest merit increase since April 2013 ie., one in close to 3 years now! Perhaps Michael Dell now realized his mistake and is wanting to sell this unit off that he bought with great plans It is a fact that the company’s net worth has eroded since that buy out and there may be very few takers to pay that extra premium on this low quality Asset

  • KV Anna

    This division of dell is in shambles, it carries too much of old dead wood who have just survived the system and hiding under the carpet whenever the call to cleanout ever happened. The talent is below average since they have never been exposed to high end work and continue to survive at the back of hardware related services and to top it the ex Wipro crowd have been ruling the roost with no strategic direction. The dead wood of Wipro joined dead wood of perot and post acquisition clean-up would ..

  • Star_strike

    Absolutely correct .. and to top it all the credentials of ex-Wipro staff put into leading various divisions have been at the back of who knows who and they have never have held roles in either similar capacity or let alone similar industry vertical segment. This division will require an immense clean-up since most of the projects are staff augmentation and they have never delivered a single project end to end. Rules were bend to get ex Wipro cousins into the systems and ethics committee stayed silent, it is evident from the way this unit operates and hiring is done. Their offerings are decade old and lacks any punch. An absolute unprofessionalism bunch of dead wood of ex Wipro and ex perot with no direction than clocking the miles.

  • KV Anna

    I agree to all this & more and accept our mistakes…but pls give us another chance. We were just enjoying our time / money provided by Dell but forgot to be serious on the business front. I am counting on you NTT for my next 5 years of enjoyment and then again you can sell it off to someone…this will continue forever & forever