Sources say NTT Data in lead to acquire Dell’s Perot Systems

JAPAN’S NTT Data Corp is in exclusive negotiations to acquire Perot Systems, the information technology consulting division of Dell Inc, although differences over price persist, according to sources familiar with the matter.

The deal would be NTT Data’s most significant overseas acquisition as it seeks to expand in the United States and boost its offering in so-called knowledge process outsourcing, which has become popular with businesses looking to cut costs.

NTT Data has so far prevailed in an auction for Perot Systems, though it has yet to agree on a price with Dell, which has been seeking more than US$5 billion in a potential divestment, the people said on Friday, cautioning that no deal is certain.

NTT Data may seek to buy only parts of Perot Systems if it cannot agree a deal with Dell for the entire division, one of the people said.

The talks between the two companies are expected to continue for the rest of the month, another of the sources added.

The sources asked not to be identifiedbecausethenegotiations are confidential.

RepresentativesofNTTDataand Dell did not immediately respond to requests for comment.

PerotSystemsisamajorprovider of IT consulting to hospitals and government departments.

Founded in 1988 by former US presidential candidate Ross Perot, it was acquired by Dell in 2009 for US$3.9 billion.

Dell is hoping a sale of Perot Systems will help it trim its debt load following its cash-and-stock deal to acquire data storage company EMC Corp.

The agreement was worth US$67 billion when it was agreed last October.

It is scheduled to close between May and October, subject to approval by EMC shareholders.

Dell will have US$49.5 billion in debt as a result of the deal. — Reuters