Subscribe To Our Daily Enewsletter:

Dell Perot Sale Negotiations: NTT Is Potential Buyer

Dell is negotiating to sell Perot Systems to NTT Data. The negotiations appear to be exclusive, meaning that no other suitors are bidding to buy Perot at the present time, according to a report.

Updated March 7, 2016, 9:52 p.m. ET: NTT Data apparently is presenting a $3.52 billion offer for Dell’s Perot Systems business this week.

Original Feb. 13 Coverage:

michael-dellReuters reported the Dell-NTT negotiations for Perot Systems, and suggested the negotiations could continue for another month. A potential sale to NTT could include some or all of Perot’s business, though there’s no guarantee a deal will occur, the report said. ChannelE2E has not independently confirmed the Dell-NTT discussions.

Dell has been trying to sell Perot, the hardware giant’s IT services arm, for up to $5 billion, multiple reports suggest. Names like Atos (a French IT services firm) and Cognizant Technology Solutions also emerged as rumored bidders more than a month ago.

However, Atos recently denied interest in Perot, and Cognizant this past week announced a weaker-than-expected forecast for fiscal 2016 — which suggests a potential Perot bid is unlikely.

Dell-EMC and More

Dell is juggling several major financial moves at the moment. In addition to a potential Perot Systems sale, Dell expects to IPO its SecureWorks business soon. Plus, the company is striving to line up financing for its $67 billion buyout of EMC Corp.

The Perot and SecureWorks moves would potentially strengthen Dell’s balance sheet ahead of the EMC buyout, which is expected to close between May and October 2016.

Some investors have been pushing Dell to improve its bid for EMC. But EMC didn’t attract higher bids during a “go shop” period in 2015, so it’s unlikely Dell will sweeten the deal.

Michael Dell, EMC CEO Joe Tucci and EMC’s board members have publicly endorsed the Dell-EMC combination multiple times in recent weeks. EMC Board Member William Green recently said only an act of God could derail the pending Dell-EMC deal.

Return Home

3 Comments

Comments

    Anonymous:

    There is no such thing as Perot Systems anymore. When Dell bought Perot Systems in 2009, it absorbed it into the company as the Dell Services division. There is no separation within Dell Services; there is just Dell Services. There is no portion of Dell called Perot Systems.

      Joe Panettieri:

      Hi anonymous: Thanks for the info. We take some poetic license in our blog for SEO (search engine optimization). The IT channel and Wall Street are both wondering what will happen with the “Perot” piece of the business — even if that’s no longer the name. We’re more than happy to answer the call for that info. 😉
      -jp

    Bo:

    I worked for Perot Systems and it was a GREAT company, before Dell bought us and basically trashed us! Dell’s idea of managing a company was to send you an e-mail? I have actually never meet anyone from DELL? If you called HR, you sat on hold for 2 hours…I kid you NOT! DELL is lost and should sell Perot, because they do not have a clue. They sit in Plano Texas and throw applications and group policy at your network? Then we run around for 3 months cleaning up the broken pieces. They stripped the “Perot” red-headed step children of expenses. Gave us terrible benefits. One raise in 3 years… Great people have left the company. DELL mismanaged Perot and now they want to sell???? They will destroy EMC as they did Perot.

Leave a Reply

Your email address will not be published. Required fields are marked *