Nippon Telegraph and Telephone (NTT) Corporation, has decided to take NTT Data, its data center business, private. It recently made an announcement to acquire NTT Data’s shares listed on the Tokyo Stock Exchange, making it a wholly owned subsidiary.

In a press release NTT revealed that the tender offer period extends from May 9 to June 19, 2025, during which time 592,810,968 shares will be acquired at ¥ 4000 per share. This comes up to ¥ 2,371,243,872,000 (~US$ 16.04 billion). It further said that the decision was made in order to eliminate conflicts of interest arising from dual listing; ease the decision-making processes; and enable greater accountability to shareholders regarding the investment of resources.

“In recent years, rapid technological innovation has given rise to a society in which people and various materials are digitally connected through systems and networks, driving changes in an unprecedented speed across the social environment from corporate activities to consumer behavior and lifestyles,” said NTT explaining the move in an official statement. “As technology continues to evolve, the needs of businesses and society are becoming increasingly diverse and sophisticated, heightening the importance of IT services that can effectively address these demands. As a result, the Target Company (NTT Data) expects that the demand for IT services providers including itself will continue expanding steadily in the future.”

It further explained, “On the other hand, market competition is intensifying due to the entry into the digital domain not only of existing IT services providers, but also consulting firms and a variety of technology vendors. Under these competitive circumstances, the Target Company Group believes that it is essential to establish a competitive advantage at the global level in order to continue delivering value to customers and society.”

The move will catalyze initiatives to enhance growth investments by leveraging NTT group’s cash flow and financing capabilities. These initiatives include expansion in the North American market, expansion of AI-enabled services, and upgrading data center infrastructure, among others. At present NTT Data operates over 150 data centers in 20 countries across the world spread across APAC, South Asia, the Americas and EMEA. This includes seven data centers in the United States.

According to NTT, the Tender Offer will be financed through bridge loans from five Japanese financial institutions. The bridge loans are planned to eventually be replaced with long-term financing.



Source link