NTT's Acquisition Bid For Dimension Data Cleared

Nippon Telegraph and Telephone and Dimension Data on Monday said that they have agreed on the terms of NTT's cash offer for Dimension Data in a $3.3 billion deal to create a huge global IT services and solution provider.

Tokyo-based NTT on July 15 said it planned to acquire Dimension Data, a London-based solution provider with extensive business in the U.S. Dimension Data as of September 2009 had a yearly revenue of $4.0 billion and about 11,500 employees worldwide.

NTT on Monday said that it had received acceptance of the acquisition by over 93 percent of Dimension Data shares, and that all the regulatory conditions of the acquisition bid were satisfied or waived.

Dimension Data in the U.S. is based in New York, and has offices around the world.

The combination of NTT and Dimension Data creates a global powerhouse in the IT industry.

Next: Creating A Global IT Powerhouse

NTT said the acquisition of Dimension Data features a lot of synergy and relatively overlap.

NTT is a global provider of managed network services, data centers, system integration, and mobile services, while Dimension Data focuses on the development, operation and maintenance of IT infrastructure, including network devices and servers at the clients’ site.

Geographically, NTT' business is focused mainly focuses on Asia, but it also has some business in Europe and the U.S. Dimension Data also has business in Asia, Europe, and the U.S., but also has a strong presence in Africa, the Middle East, and Australia.

A large part of NTT's customer base includes Japanese and multinational corporations looking for cross-border solutions, while Dimension Data provides services and solutions to locally-based and multinational and global clients around the world.

NTT also said that the combination will enable the new entity to take advantage of NTT's telecom technology including its NTT DOCOMO mobile service and NTT DATA application development service to help global customers take advantage of cloud computing.

Next: Dimension Data Expanded Even While Being Acquired

Dimension Data, which has expanded in part by several acquisitions worldwide, continued that expansion even as it was in the process of being acquired itself.

Since the July 15 announcement that NTT would acquire it, Dimension Data has made offers to acquire Integral Axon Computer Systems, a New Zealand-based provider of IT services, and mvision, a U.K. video conference integrator and managed video services provider.

Satoshi Miura, President and CEO of NTT said in a statement, ’By leveraging the complementary strengths of both companies and by leveraging our synergies, we will provide global, high quality, end-to-end ICT services across the services lifecycle. Also we strongly believe that we will accelerate the execution of our strategies to achieve our shared vision.’

Dimension Data is ranked number 30 on the 2010 VAR500 list of top solution providers.

Dimension Data will become a wholly-owned subsidiary of NTT when the deal closes.