TOKYO Oct 28 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
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
Denver, Colorado-based Virtela provides services to
corporate clients in more than 190 countries through local
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.