NTT secures bids for $16.3b takeover of NTT Data

Nippon Telegraph and Telephone Corp. (NTT) has secured enough bids to acquire NTT Data Group Corp. in a deal valued at ¥2.37 trillion (US$16.3 billion).

The settlement process is scheduled to begin on June 26, according to a company statement.

NTT currently owns about 58% of NTT Data and has offered ¥4,000 (US$25.3) per share for the remaining shares. This acquisition is part of NTT’s strategy to privatize NTT Data, one of the largest data center operators in the world.

The deal is expected to support NTT’s initiatives in AI and improve its corporate structure.

NTT faces competition from domestic firms like KDDI Corp. and SoftBank Corp. as Japan seeks to develop a homegrown AI platform to compete with international companies such as OpenAI.

This acquisition is part of a broader trend in Japan, where conglomerates face regulatory pressure to simplify their corporate structures.

NTT’s latest move follows its acquisition of wireless carrier NTT Docomo Inc. in 2020, further strengthening its position in the market.

🔗 Source: Bloomberg

🧠 Food for thought

1️⃣ NTT’s acquisition continues a deliberate strategy of consolidation and tech expansion

The NTT Data deal represents the latest in NTT’s pattern of strategic acquisitions designed to strengthen its technological capabilities while simplifying its corporate structure.

This follows NTT’s previous major acquisition of its wireless carrier NTT Docomo in 2020, demonstrating a consistent approach to bringing key subsidiaries under direct control 1.

NTT has a history of strategic acquisitions, including Dell Services in 2016 (positioning it as a top 10 global business and technology services provider) and Sierra Systems in 2018 (adding 700 Canadian professionals to enhance its North American presence) 2, 1.

The company’s evolution from its founding in 1952 as a government-owned corporation to its privatization in 1985 and subsequent global expansion has been marked by strategic acquisitions that have helped it serve 88% of Fortune Global 100 companies today 3.

With approximately 310,000 employees globally, NTT’s consolidation of NTT Data creates a more streamlined organization better positioned to make decisions about AI investments and strategy implementation 3.