Enterprise, Mergers and Acquisitions, IT management, Mergers and Acquisitions

Dell Sells Services Business; Are Quest Software, SonicWall Next?

Dell Technologies CEO Michael Dell
After weeks of rumors, NTT Data is officially buying Dell's IT services business for $3.055 billion. New reports suggest Dell may also be looking to sell its Quest Software and SonicWall businesses. The various moves could help Dell to strengthen its balance sheet ahead of the EMC buyout, which is expected to close between May and October 2016.

> Update June 20, 2016: Dell Sale of SonicWall, Quest Software? Announcement Could Come This Week
> Update June 15, 2016: Dell reportedly still negotiating to sell Quest Software, SonicWall.

NTT Data's buyout of Dell Services will shift 28,000 employees to the Japanese company. NTT gains lucrative customer contracts across a range of vertical markets, including healthcare, financial services and the U.S. federal government. Official timing for the deal was not disclosed.

Channel partners may also rejoice, especially in the midmarket, since Dell essentially is shedding major IT consulting and managed services business practices.


Still, the deal's value is weaker than some pundits had been expecting. Dell had been seeking $4 billion or more for the business unit. The reported asking price allegedly fell to $3.6 billion in recent weeks, before the company and NTT settled on the $3.055 billion figure.

Dell paid $3.9 billion for Perot Systems in 2009, though certain pieces of the business won't be sold to NTT.

Will Dell Sell Quest Software and SonicWall?

Dell has been shedding some assets as part of a broader effort to raise money ahead of its $67 billion buyout of EMC. Rumors are swirling again that Dell may be looking to sell off Quest Software and SonicWall, which could be worth as much as $4 billion, Reuters reported.

Together, Quest and SonicWall represent a range of IT management and security solutions. SonicWall has a particularly close following in the IT channel.

In recent months, Dell has either licensed or sold certain Quest technologies to NinjaMSP, a startup led by former PacketTrap executives. PacketTrap had been part of the Quest Software business until Dell shut it down in August 2013.



Joe Panettieri

Joe Panettieri is co-founder & editorial director of MSSP Alert and ChannelE2E, the two leading news & analysis sites for managed service providers in the cybersecurity market.