The board of Nippon Telegraph & Telephone Corp. is planning this week to discuss a proposed takeover of Dell Inc.’s Perot Systems division, according to two people with knowledge of the matter.
The board of Japan’s biggest phone company will discuss issues including a price range its NTT Data Corp. unit would offer for the technology consulting business, said the people, who asked not to be identified because the deliberations are private. An offer could be approved as soon as this month, one of the people said.
An acquisition — Nikkei has reported the offer may exceed ¥400 billion ($3.6 billion) — would be NTT Data’s biggest ever as the network-services provider looks to acquisitions to increase sales outside of Japan.
Dell, which paid $3.9 billion for Perot in 2009, is selling off some assets before completing a record technology deal, the $67 billion takeover of software and storage systems provider EMC Corp.
Dell’s services segment, which includes Perot, had sales of $2.8 billion in the fiscal year ended Jan. 29, down about five percent from 2015, according to a regulatory filing.
Representatives at Dell, NTT and NTT Data declined to comment.
NTT Data, which aims to make 50 percent of its revenue from overseas markets by 2020, compared with 25 percent in 2014, has been building up sales abroad through acquisitions since 2008. The company, whose services range from providing electronic medical records to billings, will probably see profit surge 89 percent to a record ¥60.6 billion for the year ending March 31, data show.
The systems unit of Japan’s former telephone monopoly has more than doubled in market value since 2011 on rising sales to financial and enterprise customers using the company’s data centers and software. This year, the stock has fallen 5.8 percent, valuing the company at about ¥1.6 trillion. That is a smaller drop than the broader Topix Index has seen.
Dell acquired Perot with plans to expand in the fast-growing market for data services. Perot was founded by H. Ross Perot, the billionaire who ran for U.S. president in 1992 and 1996. Perot sold his first major company, Electronic Data Systems, to General Motors for $2.5 billion in 1984.
Dell’s Perot unit has won government contracts for health care IT services and work for the Defense Department, NASA, Homeland Security and Education departments.