NTT plans to make NTT Data Group Corporation its wholly-owned subsidiary

NTT Moves to Acquire Full Ownership of NTT Data Group Corporation in Major AI Strategy Shift

NTT, the prominent Japanese telecommunications company, has announced its intentions to fully acquire NTT Data Group Corporation, in a strategic move to pivot towards artificial intelligence. The ambitious tender offer, reportedly valued up to USD 21 billion, seeks to transform NTT Data into a wholly-owned subsidiary of NTT. This initiative is being closely watched by industry analysts as it underscores NTT’s commitment to expand its capabilities in AI and data services.

According to Bloomberg, this acquisition is a significant part of NTT’s broader strategy to enhance its technological infrastructure and competitiveness in the rapidly evolving field of AI. This move is aligned with the company’s long-term vision to bolster its position in the global tech landscape.

Tech in Asia highlights that the acquisition will involve buying the remaining shares of NTT Data, bolstering NTT’s control over its IT services arm. This consolidation is viewed as a significant step that will enable NTT to streamline operations and leverage synergies between its telecommunications and IT service sectors.

Nikkei Asia also notes the scale of the tender offer, which is one of the largest in NTT’s history, reflecting its aggressive expansion strategy. The successful completion of this transaction will grant NTT total ownership of NTT Data, enabling it to integrate advanced AI solutions more efficiently across its service offerings.

As reported by Telecompaper, the deal is valued at approximately USD 20.9 billion and is a testament to NTT’s strategic focus on AI-driven data solutions. This acquisition is expected to enhance NTT’s ability to develop and deploy cutting-edge technologies in data analytics and information management.

Financial Post reports that the announcement has generated significant interest in NTT Data shares, which have seen a surge in buy orders following the tender offer news. Investors are keenly observing the developments as NTT attempts to solidify its leadership in AI and data services on a global scale.

This move by NTT could potentially place the company at the forefront of technological innovation, reinforcing its market position and offering enhanced value to its customers through integrated AI solutions. Industry stakeholders will be watching closely as NTT embarks on this transformative acquisition journey.