Japanese telecom company NTT has announced that it wants to fully acquire its subsidiary NTT Data through a transaction valued at 2.37 trillion yen, equivalent to about 14.5 billion euros at the current exchange rate.
Currently, NTT already owns 57.7 percent of NTT Data‘s shares. The company is now offering 4,000 yen (24.50 euros) per share for the remaining shares, which represents a premium of 34 percent compared to Wednesday’s closing price. This move will result in NTT Data being delisted and becoming a wholly-owned subsidiary of NTT.
Faster Decisions and Better Synergy
According to NTT, the current structure, with NTT Data being separately listed, leads to slow decision-making and complex accountability to shareholders of both companies. By fully incorporating NTT Data, NTT aims to streamline decision-making and roll out its global IT services more efficiently. NTT Data will be positioned as a central player within the group’s international growth strategy.
NTT emphasizes that the acquisition will make it easier to invest in fast-growing markets such as artificial intelligence and digital engineering. The acquisition should also support the expansion of the data center portfolio. NTT Data operates more than 150 data centers worldwide.
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Investments and Cost Optimization
The acquisition is being financed with bridge loans from five Japanese financial institutions. NTT plans to convert these loans into long-term financing later. At the same time, the company aims to restore its pre-acquisition financial position in the medium term through cost optimization, higher profitability, and synergy benefits.
Additionally, NTT wants to strengthen the sales of integrated IT services to large companies through closer collaboration between subsidiaries, such as NTT Communications and NTT TechnoCross. Collaboration in research and development is also envisioned, including for the deployment of AI applications and strengthening data center infrastructure.