Tokyo, July 30, 2010 (IRG) - NTT has had an agreement to acquire Dimension Data for US$3.2 billion. The deal is the largest acquisition for NTT since it bought a 26 percent stake in India's Tata Teleservices in 2008.
NTT currently hosts data centers in 31 countries, mainly in Asia, the U.S. and Europe, but the acquisition will open up Africa, the Middle East and Australia. The company is expected to focus on cloud computing services as fixed-line and mobile telecoms markets approach the limits of potential growth. Acquiring Dimension Data will help NTT achieve its target of doubling overseas revenues of US$1.85 billion in 2007 by March 2011.
Dimension Data will remain as a separate business and the management team will remain at the company. According to research firm Ovum, cultural differences between telecommunications services giant NTT and Dimension Data could be a concern for the merged firm.
Ovum questioned whether NTT's network and hosting capacity, combined with DiData's system integrator capabilities, would create integrated global services in the age of cloud computing, as claimed by NTT. There were historic warning signs that must be considered in such a cross-cultural, cross-industry marriage.
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