NTT's acquisition of Dimension Data is an excellent move for both companies that may potentially boost competition in the local market, say analysts.
According to a joint announcement, global telecommunications giant Nippon Telegraph and Telephone (NTT) and IT services and solutions provider Dimension Data have reached an agreement on the terms of a cash offer by NTT for the entire issued and to be issued ordinary share capital of DiData.
London- and Johannesburg-listed DiData is being bought for £2.1 billion (R24.2 billion) by the Japan-based telco.
“By leveraging the complementary strengths of both companies, we are confident that we will provide end-to-end, global one-stop and high-quality ICT services,” says Satoshi Miura, president and CEO of NTT.
“Our combined strength will allow us to accelerate execution of our strategies to achieve our shared vision. We have established a strong relationship between the management of Dimension Data and that of NTT.”
Analysts say the agreement is a positive move for both countries, but the effect for SA may not be as promising.
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