A source told Bloomberg that NTT Communications Corp would be acquiring Virtela Technology Services Inc for a price tag of USD 512 million or JPY 50 billion. The person with knowledge of the matter said the purchase would allow the Japanese firm to expand its cloud computing footprint in the US. Nippon Telegraph & Telephone Corp is the parent company of NTT Communications. Nippon Telegraph is the biggest fixed-line provider in Japan.
According to a Bloomberg report, Japanese telecommunications firms were looking for opportunities to grow in other markets. Growth had stalled in Japan, the fastest aging major economy in the word. Information from Virtela's website showed that the company provides fixed-line and wireless network management. It also gives cloud service and security services.
NTT Communications Spokeswoman Minako Yamashita told Bloomberg, however, that there was no final decision of the purchase yet. Virtela declined to comment on the deal.
This year, NTT Communications rival Softbank Corp purchased a controlling stake in Sprint Corp to tap the US market.That deal was worth USD 21.6 billion.
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