NTT ups ante with £2.1bn Didata offer

The £2.1bn deal is expected to close by end of October

Japanese telco NTT has pounced on its second pan-European VAR in as many years after agreeing the terms of a £2.1bn deal with Dimension Data.

The firm gained a foothold in the UK and European channel last year through its €75m acquisition of security specialist Integralis.

But it has now gone a step further by laying down £2.1bn in cash for network integrator behemoth Didata. Listed on the London and Johannesburg exchanges, Cisco Gold partner Didata boasts presence across EMEA, the US and Asia and posted operating profits of $107.5m (£70m) on revenues up 11 per cent to $2.2bn in its fiscal first-half to 31 March.

NTT chief executive Satoshi Miura said he was pleased his firm’s approach had gained unanimous support from Didata’s board of directors.

He added: “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.”

Brett Dawson, chief executive of Didata, said: “We are very excited to begin collaborating with NTT to expand and deliver this joint value to our clients.”

NTT claimed there was minimal overlap between the two firms’ strengths, with NTT focusing on managed network services, datacentres, system integration and mobile services and Didata focusing on the development, operation and maintenance of IT infrastructure.

The acquisition is set to be implemented by means of a recommended cash offer to Didata shareholders worth 120p a share. That would mean a total acquisition price of £2.12bn.

The deal is expected to close by the end of October.

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