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Dimension Data Executive Explains NTT's Buyout Offer
Was Dimension Data looking for a suitor?
NTT has made an offer to Dimension Data. We were not looking to be acquired. Over the years, Dimension Data has demonstrated it has a lot of value in the marketplace. It has global capabilities and a global footprint. Those are valuable. Other companies have expressed interest in Dimension Data in the past. We felt NTT offered us the ability to maintain our brand as a wholly owned subsidiary and would assist in accelerating our ongoing transformation to a services organization.
What will Dimension Data and its customers get out of the deal?
Several things. One, Dimension Data, like every public company, has shareholders. Our shareholders have approved and are pleased with the financial return on this. Also, there are many new models in the marketplace -- software as a service, cloud -- we have been working on building those. A global telecommunications company like NTT along with the infrastructure capabilities of Dimension Data, a combination of those, really meets the requirements that our clients have. That, along with the partners we have, we think it's a win win win. NTT is a $100 billion company; 90 percent of its revenue comes from Japan. Dimension Data, a $4 billion company, has revenue that is more equally divided.
Sounds like the companies are pretty much complementary in terms of offerings. How will employees benefit?
They have opportunity to grow as our company grows. NTT is a large company as well and there will be opportunities for employees grow with NTT as well. The culture at DD is one of the things that makes us great. Retaining the brand, the culture, is really important. Being a wholly owned subsidiary and keeping our leadership -- Jeremy Ord as chairman, Brett Dawson as global CEO and myself, is a benefit to our employees.
Doesn't sound like there should be all that much consolidation, since there is not much redundancy.
There really isn't, as we'll operate as a wholly owned subsidiary. After the acquisition, we'll sit down and determine the best ways we can go to market together.
What does Dimension Data Americas get out of all this?
After the acquisition is completed, it will give us an opportunity to offer a broader set of offerings. It will allow us to accelerate our services growth. And, it creates more opportunities for employees.
I'm pretty excited about it.