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Nippon Telegraph and Telephone Corp., one of the world's largest providers of telecommunications and IT services, has announced an agreement to acquire IT service provider Dimension Data. The all-cash deal, valued at about £2.1bn (US$3.2bn), was recommended by both company's boards of directors, according to a joint news release.

NTT President and CEO Satoshi Miura, in a statement, said the combined company will provide global one-stop ICT services, putting emphasis on cloud computing. "Our combined strength will allow us to accelerate execution of our strategies to achieve our shared vision."

There is little overlap in the two companies' service solutions. While NTT's business has central focus on managed network services, data centers, system integration and mobile services, Dimension Data's focus is on development, operation and maintenance of IT infrastructure.

NTT does cover US and Europe, its business is concentrated in Asia, while Dimension Data, in addition to providing services in Asia, US and Europe, also has presence in Africa, Middle East and Australia, making the two businesses geographically complementary.

The buyer expects to complete the acquisition by the end of October 2010. NTT said it will fund the purchase using cash on-hand and loan facilities arranged for the purpose of the offer by the Bank of Tokyo-Mitsubishi UFJ.