Japanese telecommunications operator, NTT, plans to acquire Dimension Data, which specialises in managed IT infrastructure and services, for $US3.2 billion, the two companies announced.
NTT said the deal, recommended by both companies' boards of directors, would allow it to offer new IT services worldwide in the age of cloud computing.
Dimension Data focuses on developing and operating IT infrastructure including hardware devices and services at clients' sites. NTT said the services of the two companies do not overlap, as it now concentrates on managed network services, datacenters, system integration and mobile devices.
“We are delighted that the board of directors of Dimension Data has unanimously agreed to support our offer for Dimension Data," NTT CEO and president, Satoshi Miura, said in a joint statement.
"By leveraging the complementary strengths of both companies, we are confident that we will provide end-to-end, global-one-stop and high quality ICT services. Dimension Data and NTT share the common vision to create new services and values to succeed in the coming age of cloud computing."
Dimension Data executive chairman, Jeremy Ord, expected the medium and long-term strategy to be ramped up.
"NTT and Dimension Data have a shared vision of how the market will evolve. The combination of NTT’s global resources and Dimension Data’s system integrator capabilities is an extremely powerful combination,” he said in the statement.
The deal is expected to be completed by the end of October with NTT due to announce the forecast impact on its performance shortly.
Dimension Data also has business in Africa, the Middle East and Australia, whereas it focused more on Asia, Europe and the US.
Dimension Data, which is headquartered in London, has 11,500 employees and 6000 clients.
The deal should be complete by the end of October, subject to approval from competition authorities, the companies said.
More to follow.