NTT Data deepens medical IT field layout, acquiring Dell's Perot system for more than $3 billion

According to the Wall Street Journal, Japanese IT services giant NTT Data announced on the 28th that it will acquire Dell's information technology services division for US$3.05 billion. This will help expand NTT Data's healthcare IT industry and address technology and business outsourcing concerns.

NTT Data said the acquisition will help him expand his global service network in North America. This is NTT Data's largest hand to date and is expected to add 28,000 jobs in North America and India.

First, why should Dell sell the Perot system?

Dell’s total sales revenue in 2015 was $58.1 billion. In order to complete the $67 billion acquisition of EMC and reduce debt pressure, Dell decided to sell some of its non-core businesses from April last year.

Dell's IT services division was previously Perot Systems, founded in 1988 by former US presidential candidate Ross Perot. The company is one of the leading technology consulting service providers for hospitals and government agencies in the United States.

In 1995, Pero System Health Group was established. At the same time, Tenet Healthcare Corporation (a company established by American Medical International to acquire from National Medical Enterprises) signed a contract with Perot to integrate the IT systems and business processes of the two companies and build an integrated technology environment.

On February 1, 1999, the Perot system was listed at an issue price of $16 per share.

In August 2003, Perot Systems further enhanced the payment processing capabilities of the existing healthcare business by acquiring VISION HEALTHSOURCE, India's leading provider of billing and claims solutions.

In September 2009, Dell acquired Perot Systems for $3.9 billion.

Second, NTT Data takes IT technology as the core and looks at the global layout.

NTT Data Group is one of the five core groups of the world's top 500 NTT (Japan Communications and Telephone Company) group. The leader of Japanese IT service companies was listed on the Tokyo Stock Exchange in 1995. At present, NTT Data Group has established more than 200 subsidiaries and branches around the world, covering more than 40 countries and regions, with about 80,000 employees, and its scale and strength are among the top 10 in the global IT industry.

NTT Data's 70% of its customers are Fortune 500 companies, providing services such as electronic medical records, surgery management, telecom corporate billing, and insurance claims to hundreds of suppliers.

The sluggishness of Japan’s domestic market has prompted Japanese companies to look overseas. In 2010, NTT Data acquired Dimension Data Holdings PLC, a South African technology company, for $3.05 billion. In the same year, it acquired US technology services company Keane Inc. for approximately $1.04 billion. Since 2011, according to Bloomberg's data, NTT Data spent a total of 540 million US dollars for the acquisition of overseas companies.

John McCain, CEO of NTT Data, said: "There are some similar acquisition targets in the market. We hope that through such acquisitions, we will enhance our competitiveness and open up more market space."

Third, NTT Data integrated management of various types of data in the pharmaceutical research and development business ASP service

NTT Data deepens medical IT acquisition of Dell's Perot system

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