Japan’s Nippon Telegraph and Telephone Corp. (NTT) plans to acquire all remaining shares of NTT Data Group Corp, aiming to make it a wholly owned subsidiary and strengthen its focus on AI.

NTT Data is a prominent global data center provider. It offers AI services and consulting to international clients, including some in the US.

The company’s board will meet on May 8, 2025 to discuss a tender offer for the shares it does not currently own. NTT currently holds a 57.7% stake in NTT Data.

The acquisition is estimated to be valued between 2 trillion yen (US$13.88 billion) to 3 trillion yen (US$20.82 billion).

🔗 Source: Bloomberg

🧠 Food for thought

1️⃣ NTT’s move continues its decade-long consolidation strategy to strengthen global competitiveness

The planned $14-21 billion tender offer for NTT Data follows a clear pattern of strategic consolidation that NTT has pursued for years to enhance its global position.

NTT has consistently used acquisitions to expand its technological capabilities and global reach, including the $3.2 billion acquisition of Dimension Data in 2010 1 and its gradual acquisition of itelligence AG between 2007-2013 2.

This latest move builds on NTT’s 2018 reorganization that combined three subsidiaries, NTT Data, NTT Communications, and Dimension Data, to create Japan’s largest IT service provider capable of competing with global giants like IBM 3.

The full acquisition of NTT Data (currently 57.7% owned) aligns with Tokyo Stock Exchange recommendations to protect minority shareholders in parent-affiliate listings, while giving NTT complete control over a subsidiary that operates globally in 42 countries 4.

By bringing NTT Data fully in-house, NTT gains direct access to its extensive network of data centers and AI services that serve international clients, supporting the parent company’s overseas expansion ambitions.

2️⃣ Japan’s telecom giants are racing to secure AI leadership amid shifting market dynamics

NTT’s AI pivot reflects an intensifying competition among Japan’s telecom leaders as they seek growth beyond traditional services in a resource-constrained economy.

KDDI, NTT’s competitor, is constructing Asia’s largest AI data center in Osaka set to open by March 2026, equipped with NVIDIA’s latest GPU technology and focused on the same AI-driven growth strategy 5.

All three major Japanese telecoms—NTT, KDDI, and SoftBank—are aggressively investing in AI capabilities as Japanese companies scramble to catch up in artificial intelligence development and implementation 6.