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NTT to pay £2.1bn for Dimension Data
16 July 2010
Japanese operator NTT has made an agreed bid worth £2.1bn for South African IT group Dimension Data
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NTT
DiData
Dimension Data
JP Morgan
Morgan Stanley
Plessey
Nippon Telegraph & Telephone is continuing a move into global IT services by acquiring South African technology services provider Dimension Data for £2.1 billion.
The acquisition will help the Japanese company boost its overseas presence, especially in the African market.
The deal, which is expected to close by the end of October 2010, is subject to approval from competition authorities. Japan’s largest telecoms company will fund the acquisition with a mixture of its own cash resources and new loan facilities.
The acquisition may double the NTT’s annual overseas sales to $7 billion.
Dimension Data, which has above 6,000 customers across 49 markets, has its clients based in Asia, the Middle East and Africa. Dimension Data is South African but is listed in the UK.
It owns call centre company Merchants and has a telecoms infrastructure company operating across Africa under the name Plessey — a relic of the UK electronics group.
JPMorgan advised DiData, while Morgan Stanley advised NTT. Mitsubishi UFJ Financial Group will help finance the deal. GTB