The move will allow U.S. 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 <EMC.N>, a deal worth
close to $60 billion.
The Japanese company said it would pay around $3.05 billion, an
amount that excludes debt and unspecified advisory fees.
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.
Dell has also made progress in syndicating $10 billion of its
financing package for the EMC acquisition dubbed 'term loan A',
people familiar with the situation said earlier. 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
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.
Formerly known as Perot Systems, Dell's IT services division is a
major provider of technology consulting to hospitals and government
departments. Founded in 1988 by former U.S. presidential candidate
Ross Perot, it was acquired by Dell in 2009 for $3.9 billion.
However, Dell has since divested some of the unit's operations and
integrated some others, which it is not including in the sale. Some
of the unit's capabilities were seen by Dell as redundant in the
wake of the acquisition of EMC.
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Dell has also been speaking to private equity firms about selling
Quest Software, which helps with information technology management,
as well as SonicWall, an e-mail encryption and data security
provider, Reuters has previously reported. Together, Quest and
SonicWall could be worth up to $4 billion.
Dell's acquisition of EMC, which is backed by founder and Chief
Executive Michael Dell as well as private equity firm Silver Lake
Partners, is subject to approval by EMC shareholders. EMC is
expected to hold a shareholder vote on the Dell deal in May,
allowing for the transaction to be completed sometime between July
Reuters had reported first on Feb. 12 that NTT Data was in exclusive
talks to buy Dell's IT services unit.
(Reporting by Greg Roumeliotis in New York; Editing by Dan Grebler
and Christopher Cushing)
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