NTT Communications Corporation (NTT Com), the ICT solutions and international communications business within NTT (NYSE:NTT), and Virtela Technology Services Incorporated (Virtela), a leading global managed and cloud network services company, announced today that NTT Com and Virtela’s shareholders have entered into a definitive agreement under which NTT Com has agreed to wholly acquire Virtela for a total transaction price of approximately $525 million (USD) in cash.
Virtela LogoCombining Virtela’s advanced service/operational platforms and expertise with NTT Com’s global ICT infrastructure and resources creates an unparalleled company able to deliver cloud networking services, asset-light branch office networking, a Tier-1 IP backbone and end-to-end cloud compute, storage and network services on a global scale. Together, NTT Com and Virtela offer customers a single partner for the full lifecycle of enterprise network services with an extensive portfolio to transform enterprise IT architectures via the cloud. Virtela, a 400-employee company headquartered in Denver, Colorado with global operations and delivery centers in the US, India and the Philippines, serves more than 500 customers worldwide, including many of the world’s largest multinational companies. NTT Com offers global total ICT outsourcing for the safe and reliable transition of customer ICT environments to the cloud. Its existing offerings include Arcstar Universal One TM virtualized network services and customer-premise-to-data center and cloud-to-cloud services, utilizing SDN (software defined networking) technologies. The respective strengths of Virtela and NTT Com will be unified through the integration of their respective operations, services and networks to be introduced on a combined basis to serve customers from 2014. Using Virtela’s flexible service activation and advanced management infrastructure will further enhance NTT Com’s high-quality broadband network services in nearly every country of the world. The acquisition expands NTT Com’s global network services coverage from 160 to more than 190 countries/regions.