NTT To Buy Dimension Data


Dimension Data (2010 VAR500 rank: 30) Thursday morning agreed to be bought by Tokyo-based NTT for $3.2 billion.

Telecom powerhouse NTT focuses on managed network services, data centers, system integration and mobile services, while global solution provider Dimension Data focuses on the development, operation and maintenance of IT infrastructure, including network devices and servers at the clients’ site. The two companies offer complementary rather than competing services: Therefore, for NTT, buying Dimension Data brings 6,000 potential corporate customers that could purchase NTT's telecom infrastructure and data center offerings.

NTT Group’s business mainly centers on Asia but also covers Europe and the U.S. Meanwhile, Dimension Data, which similarly covers Asia, Europe and the U.S., also covers Africa, the Middle East and Australia.

"NTT’s network carrier capabilities and assets coupled with Dimension Data’s global system integrator expertise create an incredibly powerful and unprecedented combination of capabilities and skills," Jeremy Ord, executive chairman of Dimension Data, said in a statement. "The combined companies will hold a strong competitive position serving global corporations moving to managed infrastructure services and cloud computing."

The deal is expected to be completed this October. (Check out our video interview with Dimension Data's Jere Brown: http://www.crn.com/video/index.jhtml?id=102818381001.)