Dell May Announce Unit Sale to Japan's NTT Monday, Re/code Says

Dell may announce the sale of its technology services unit to Japan’s Nippon Telegraph & Telephone Corp. for $3.5 billion as early as Monday, Re/code reported, citing sources briefed on the process.

Dell plans to sell the division as part of a wider effort to raise as much as $10 billion from the disposal of assets that aren’t core to its business, the report said.

The acquisition by the Japan’s NTT Data Corp. would be the company’s largest, helping increase its sales outside Japan, where a shrinking and aging population has stymied economic growth. Dell, which paid $3.9 billion for what was formerly known as Perot Services in 2009, is selling some assets before completing a record deal -- the $67 billion takeover of software and storage systems provider EMC Corp.

Yoshiyuki Sekiguchi, Dell’s spokesman based in Tokyo, didn’t immediately respond request for comment. Ayako Koba, a spokeswoman for NTT Data, Ryoichi Sakurai, a spokesman for NTT, declined to comment.

NTT Data has spent more than 72 billion yen ($634 million) buying companies since 2011, about 62 billion yen of it outside Japan, according to data compiled by Bloomberg. Overseas sales had risen to 450 billion yen by the year ended March 31, 2015, compared with more than 208 billion yen in the 12 months to March 2012.

NTT Data rose 0.4 percent to close at 5,660 yen Monday, while the parent company gained 2.7 percent to 5,075 yen.

Global rivals of NTT Data including Cognizant Technology Solutions Corp., Tata Consultancy Services Ltd. and Atos SE had also previously participated in an auction for Perot Systems that failed to generate a deal, according to the Nikkei, Reuters and the website re/code, which all cited people familiar with the matter.

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