Dell Perot Sale Negotiations: NTT Is Potential Buyer
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:
Reuters 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.