NTT on Monday announced that it will headquarter its new international tech services business NTT Ltd in London, following reports to that effect earlier this year, as it seeks to build up its business outside its home market.
The Japanese giant is creating a new, US$11 billion business with NTT Ltd, which will comprise 28 existing NTT operations, including NTT Communications, Dimension Data, and NTT Security.
"When we combine the new capabilities of NTT Ltd. along with NTT DATA, we create a top five global technology and business solutions provider with US$20 billion revenues outside of Japan," NTT Corporation president and CEO Jun Sawada, said, announcing the launch of NTT Ltd. NTT DATA is the telco's global IT services arm.
Jason Goodall, chief executive of Dimension Data, the South African IT services company NTT agreed to pay £2.1 billion for in 2010, will serve as CEO of NTT Ltd, while NTT Corp EVP Tsunehisa Okuno will chair the business.
"Along with creating a very strong technology and managed services provider in NTT Ltd., we have also increased our commitment to investing more in R&D, new technology startups through our venture capital fund, and developing our own disruptive innovation business team," Tsunehisa Okuno said. "We see the opportunity to help our clients and communities more effectively when we bring all of these capabilities together."
NTT said it will retain the Dimension Data brand in the Middle East and Africa, where it has strong brand equity while NTT has no direct presence in the region. Dimension Data MEA remains a member of NTT Group and will continue to use the group's shared services, technology and platform investments, it said.
Earlier this year there were rumours of a management buyout of Dimension Data's MEA operations. Bloomberg cited unnamed sources as saying that company executives were looking to rause cash to fund a deal for the outfit, which could be valued at around $800 million. To date there has been nothing official from NTT or Dimension Data though.
Despite the ongoing Brexit saga in the UK, NTT has stuck with plans to locate NTT Ltd in London.
"We considered several locations as the headquarters for NTT Ltd and made a deliberate decision to choose London. It has many benefits, including a stable economy, wealth of skills and talent, diversity in population and thinking, strong infrastructure, schools, and housing for global talent moving to the city," said Jun Sawada.
Source: https://www.totaltele.com/503298/NTT-launches-new-global-tech-business-in-London