NTT to acquire Dimension Data
Japanese telco eyes cloud computing services in MEA with latest acquisition
Japanese operator Telegraph and Telephone Corp (NTT) has agreed to acquire South African IT and data specialist, Dimension Data, for GBP 2.1 billion ($3.21 billion).
NTT, which is keen to gain a presence in Africa and the Middle East, expects the acquisition to help it gain a foothold in the nascent cloud computing sector.
NTT, which offers network services, data centres, system integration and mobile services in Asia, the US and Europe, said that the services offered by Dimension Data, including development, operation and maintenance of IT infrastructure, complement rather than overlap with its existing services.
While both companies already have a presence in Asia, Europe and the US, NTT said it expects to benefit from Dimension Data's operations in Africa, the Middle East and Australia.
"Dimension Data and NTT share the common vision to create new services and values to succeed in the coming age of cloud computing. Our combined strength will allow us to accelerate execution of our strategies to achieve our shared vision," said Satoshi Miura, President and CEO, NTT.
NTT, which has about 195,000 employees, has been steadily growing its business outside its saturated home market of Japan in recent years, and emerging markets have been a key focus of its acquisition strategy. In 2008, NTT bought a 26% stake in India's Tata Teleservices for $2.7 billion.
The acquisition of Dimension Data, which will require the acceptance of 90% of shareholders, is expected to close in October.