Japanese telecommunications provider Nippon Telegraph and Telephone (NTT) has announced that it is to acquire UK-based IT firm Dimension Data for £2.1 billion.
The all-cash deal will see NTT take over Dimension Data in efforts to expand its global business and corporate user base.
Both companies believe they complement each other, with NTT focusing on managed network services, data centres, system integration and mobile services; and Dimension Data focusing on development, operation and maintence of IT infrastructure. This effectively respresents a complete business expansion into areas NTT has not previously worked in.
The acquisition will also see NTT gain additional markets in Africa, the Middle East, and Australia, adding to its existing operations in Asia, Europe, and the US, which will also be strengthened by Dimension Data’s presence there.
One of the key long-term goals for NTT as a result of this acquisition is to develop a cloud computing platform that will make it a leader in that market. It believes buying Dimension Data is key to this aim.
NTT will pay roughly 120p per share, to a total of £2.1 billion in an all-cash transaction. The Board of Directors of each company have approved the deal, but it must also be approved by share-holders and regulators. The deal is expected to complete in October.
Brett Dawson, CEO of Dimension Data, said: “NTT recognises the value of Dimension Data’s entrepreneurial culture and business model; our operational processes, brands, and methodologies will all remain. NTT provides a world class, IT and communications platform globally while Dimension Data brings expertise and capabilities in specialist managed IT infrastructure and services.”