Tokyo-based Nippon Telegraph and Telephone (NTT) has made two acquisitions in the US for a combined US$875m through its ICT subsidiary NTT Com.
The purchases are part of the Japanese telco’s efforts to expand its global footprint in the face of a…
Tokyo-based Nippon Telegraph and Telephone (NTT) has made two acquisitions in the US for a combined US$875m through its ICT subsidiary NTT Com.
The purchases are part of the Japanese telco’s efforts to expand its global footprint in the face of a saturated market at home that has limited potential for growth.
NTT has agreed to take over all of network solutions company Virtela Technology Services for US$525m, and 80% of RagingWire Data Centers for US$350m.
Both deals were all-cash transactions, according to an NTT spokesperson.
In a statement the operator said the Virtela acquisition would allow it “to deliver cloud networking services, asset-light branch office networking, a tier-1 IP backbone and end-to-end cloud compute, storage and network services on a global scale”.
The deal increases NTT’s network services coverage to more than 190 countries and regions.
In regards to California-based RagingWire, it said the data centre operator had revenues of US$85m last year and would more than double NTT’s data centre capacity in the US. The Japanese group now has more than 150 data centres worldwide.
RagingWire was advised by DH Capital.
In July Kaoru Kato, the CEO of NTT’s mobile unit NTT Docomo, said in an interview that his company would consider looking abroad for telecoms assets “if a good opportunity arose”.
Like fellow Japanese operator Softbank, NTT is being forced to look abroad for growth as revenues at home stagnate due to high penetration, a competitive market, and the fact that 4G services have already been rolled out.
