Nippon Telegraph and Telephone Corp. is preparing to acquire the remaining 42% stake in NTT Data Group through a tender offer worth up to ¥3 trillion ($20.9 billion), according to sources familiar with the matter, Nikkei reported.
The telecommunications company will likely offer a 30-40% premium for the outstanding shares before delisting the subsidiary, with an official announcement expected as early as Thursday.
Japan’s largest IT services provider contributes significantly to NTT’s bottom line, accounting for approximately 20% of group operating profit. NTT Data projected a 9% increase in operating profit to ¥336 billion for the fiscal year ended March.
The acquisition accelerates NTT’s strategic pivot from telecommunications toward higher-growth technology sectors. The subsidiary has seen robust performance from its data center business, riding the wave of surging demand driven by generative artificial intelligence. NTT Data ranks as the third-largest player globally in this space.
The buyout follows NTT Data’s recent partnership with OpenAI and represents the largest parent-subsidiary consolidation in Japan since NTT acquired mobile carrier NTT Docomo for approximately ¥4 trillion in 2020.
The move appears designed to streamline decision-making and bolster NTT’s competitive position against U.S. and Chinese tech giants, which have expanded aggressively through acquisitions.
