Japan’s Nippon Telegraph and Telephone Corp will merge its subsidiaries Dimension Data, NTT Communications (NTT Com) and NTT Data, Nikkei Asia Review reported on Sunday. TechCentral first reported last Thursday that the South African-headquartered Dimension Data appears set to merge with NTT Com.
Though neither NTT Group nor Dimension Data have confirmed the move officially, Nikkei Asia Review said NTT plans to launch a new company to oversee the three major communications and data subsidiaries, forming Japan’s biggest and most comprehensive provider of IT services. The group envisions merging the units into a single company later, the publication said. The idea, it said, it to position NTT better to compete with the likes of IBM and Google globally.
TechCentral understands a formal announcement will be made by NTT and Dimension Data in the coming days. NTT has scheduled a press conference for 3pm on Tuesday (Japanese time) to present its quarterly earnings — that’s 8am South African time — at which further details about the planned integration may be announced. Dimension Data Group CEO Jason Goodall is expected to address staff later in the day.
Dimension Data was bought by NTT in 2010 in a £2.1-billion deal (R24.4-billion at the time) and was then delisted from both the Johannesburg Stock Exchange and the London Stock Exchange.
Until now, Dimension Data has operated as an autonomous unit within the NTT Group. It’s not known if the developments mean that the Dimension Data brand will fall away in favour of NTT Communications or some other name.
NTT Communications, also known as NTT Com, was established in 1999. It is NTT’s largest subsidiary and provides network management, security and other technology solutions to consumers, businesses and governments around the world.
In response to e-mailed questions from TechCentral last week, Dimension Data Middle East and Africa CEO Grant Bodley said only that “NTT has not announced any changes to the structure, operations or management of the company. We do not comment on industry speculation or market rumour.”
It’s understood it has been NTT’s intention for some time eventually to fold Dimension Data into NTT Com, but that this has been brought forward for reasons that are not immediately clear.
Dimension Data, which was the largest listed IT company in South Africa before the buyout and delisting, declined to comment on what the apparent decision to merge the entities will have on the South African company’s operations and on management reporting lines. It also declined to comment on whether the Dimension Data brand will be retained, whether the move will result in job losses and whether the company’s head office will be relocated from South Africa to another territory. — © 2018 NewsCentral Media