Japan’s NTT Data is buying Dell Services, a unit of Dell Inc. that provides IT outsourcing and other services, for $3.05 billion in one of the largest foreign buyouts in recent years.
“Welcoming Dell Services to NTT Data is expected to strengthen our leadership position in the IT services market and initiates an important business relationship with Dell,” the company’s president and chief executive Toshio Iwamoto said in a press release.
The deal is NTT Data’s latest effort to seek growth overseas, something many Japanese companies are doing to offset sluggish growth within their own country, according to The Wall Street Journal.
NTT, a Tokyo-based unit of Nippon Telegraph & Telephone, has said it hopes to raise the overseas portion of its revenue to around $22 billion by the year ending March 2018, from around $15 billion in the last fiscal year. The group in 2010 bought South African IT company Dimension Data Holdings for $3.2 billion and U.S. IT-services firm Keane for an estimated $1.4 billion.
For Dell Inc., NTT’s deal for its IT services unit helps the Round Rock, Texas-based computer giant finance its $67 billion pending purchase of storage vendor EMC, slated to be completed later this year, the WSJ reported.