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Thursday, 15 July 2010 20:57

NTT to buy Dimension data for $US3.2b

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Nippon Telegraph and Telephone Corporation (NTT), one of the largest global telecommunications service providers has made a £2.1b ($US3.2b) cash offer for Dimension Data, with the unanimous support of both companies' boards.

The two companies say they share the common vision to create new services and values to succeed in the coming age of cloud computing.

According to Dimension Data executive chairman, Jeremy Ord, "NTT's network carrier capabilities and assets coupled with Dimension Data's global system integrator expertise create an incredibly powerful and unprecedented combination of capabilities and skills.

"The combined companies will hold a strong competitive position serving global corporations' moving to managed infrastructure services and cloud computing."

Brett Dawson, CEO of Dimension Data added: "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."

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According to NTT, "The strengths of NTT and Dimension Data complement each other in a fitting way'¦ NTT Group has developed its business globally with a central focus on managed network services, data centres, system integration and mobile services.

"Dimension Data however focuses on the development, operation and maintenance of IT infrastructure, including network devices and servers at the clients' site. Thus the service solutions of both companies do not substantially overlap.

"Secondly, NTT Group's business mainly focuses on Asia and also covers Europe and the USA, whereas Dimension Data (which similarly covers Asia, Europe and the USA) also covers Africa, the Middle East and Australia.

"Thirdly, NTT Group has a client base with Japanese companies and multinational corporations, thereby providing cross-border solutions. On the other hand, Dimension Data provides services and solutions to locally based and multinational and global clients around the world."

However the cultures of the two companies are vastly different. NTT is the former monopoly domestic telco in Japan. Dimension Data is an entrepreneurial company with its roots in South Africa.

 


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