The Japanese company seeks to accelerate decision-making and strengthen its position in artificial intelligence infrastructure
Nippon Telegraph and Telephone Corporation (NTT) has announced a strategic operation to acquire 100% of NTT Data, its IT services and data center subsidiary, in a transaction valued at approximately 2.37 trillion yen (around $16.4 billion).
The agreement, confirmed through an official statement and detailed in a presentation to investors, includes the launch of a voluntary tender offer for all outstanding shares of NTT Data Group Corporation (stock code 9613 on the Tokyo Stock Exchange) at a price of 4,000 yen per share. This offer represents a 34% premium over last Wednesday’s closing value.
Consolidation for Growth in the Digital Ecosystem
Currently, NTT already owns 57.7% of NTT Data, but with this operation, it aims to fully reintegrate the company within the group to gain operational agility and adapt more quickly to the demands of a global market increasingly characterized by artificial intelligence and cloud services.
NTT Data operates in over 20 countries and manages a network of more than 150 data centers worldwide. Among its recent developments, it has launched a 290 MW data center in Johor (Malaysia) and a 400 MW mega campus in Hyderabad (India), focused on AI infrastructure.
“By turning NTT Data into a wholly-owned subsidiary, we aim to unify our global strategies, reduce overlaps, and accelerate our investments in new technologies,” stated NTT’s president and CEO, Akira Shimada.
A Tech Giant with Deep Roots
NTT Data began as an internal division in 1967 within the former public corporation Nippon Telegraph and Telephone. The company was privatized in 1985, and three years later, it spun off its data division to create NTT Data as an independent entity. Since then, it has established itself as the leading IT services provider in Japan and one of the most significant players internationally.
The operation marks a milestone in the corporate history of the group and is interpreted as a direct response to the need to accelerate digital transformation in light of the explosive demand for AI solutions, storage, and data processing.
Offer Details
According to the official documents submitted to the Tokyo Stock Exchange and compiled in the notice titled Notice regarding Commencement of the Tender Offer for Shares of NTT DATA Group Corporation, the offer will be launched with the following conditions:
- Price per share: 4,000 yen (around $27.65).
- Duration of acceptance period: 30 trading sessions.
- Goal: to acquire over 90% of the capital and proceed to a potential delisting (squeeze-out).
- Expected effects: simplification of the group’s structure, improvement in administrative efficiency, and global strategic alignment.
Market Reaction and Outlook
The news has generated a wave of interest in the market, driving up NTT Data’s shares and eliciting positive reactions from analysts. Many see this operation as a logical and necessary step to address the rise of competitors in Asia and America, as well as to strengthen Japan’s role in the global race for technological leadership.
If the operation proceeds as planned, NTT will reinforce its control over a key component of its global digital strategy while positioning itself to capitalize on the growing demand for data centers, automation, and hybrid cloud services.
Source: NTT