Japan's NTT Comm to buy 2 U.S. cloud computing firms -source

TOKYO Sun Oct 27, 2013 10:33pm EDT

TOKYO Oct 28 (Reuters) - NTT Communications Corp plans to buy two U.S. cloud computing firms for up to 100 billion yen ($1 billion) combined, a source with knowledge of the matter said, as Japanese firms ramp up efforts to improve overseas networks through acquisitions.

The unlisted long-distance and overseas calling unit of Nippon Telegraph and Telephone Corp will buy Virtela Technology Services Inc, allowing it to offer data services globally without licensing cables and lines in individual markets.

Denver, Colorado-based Virtela provides services to corporate clients in more than 190 countries through local partnerships.

Information on NTT Communications' planned acquisition of a second U.S. cloud-related firm was not immediately available.

An NTT Communications spokesman declined to comment but said President Akira Arima was due to hold a news conference at 4:30 p.m. (0730 GMT) in Tokyo.

NTT Communications, which operates data centres in Hong Kong and Britain, aims to boost revenues from cloud services above 200 billion yen by the business year to March 2016, more than double the figure for 2011/12, as it grapples with declining revenue from voice services.

Cash-rich Japanese firms have been actively acquiring overseas companies in recent years, including in the telecoms and information technology sector where SoftBank Corp in July completed its $21.6 billion purchase of Sprint Corp, Japan's biggest overseas acquisition.

A couple walks along the rough surf during sunset at Oahu's North Shore, December 26, 2013. REUTERS/Kevin Lamarque

Find your dream retirement town

Florida? Hawaii? Reuters has teamed up with Zillow to give you the power to customize a list of your best places to retire.  Video | Full Article