NTT plans to take its IT services and data center subsidiary NTT Data private in a 2.37 trillion yen ($16.4 billion) deal.
The Japanese conglomerate announced on Thursday that it intends to purchase the entirety of Tokyo-listed NTT Data’s outstanding share capital, and will pay 4,000 yen ($27.65) per share. The price represents a 34 percent premium on Wednesday's closing valuation.
Operating in 20 markets around the world, NTT Data says it runs more than 150 data centers. It is thought NTT wants to bring the firm back in-house to speed up decision-making and help it capitalize on the rapidly growing demand for AI infrastructure.
Currently, NTT owns 57.7 percent of NTT Data, and news of its plans to take the firm private, first reported by Asia Nikkei, sparked a surge of interest in its shares.
NTT Data’s origins can be traced back to 1967, when Japan Telegraph and Telephone Public Corporation founded a data division.
That company was privatized in 1985, becoming NTT, and it spun off its data business into a separate company, NTT Data, in 1988. NTT Data now claims to be the biggest ITSP in Japan.
Recently announced data center projects include a 290MW facility in Johor, Malaysia, and a 400MW AI data center in Hyderabad, India.
