On May 8, NTT announced that it would make NTT DATA Group a wholly owned subsidiary.
President Akira Shimada explained, “In our medium-term management strategy announced in 2023, we have positioned the business that NTT Data is working on as the driving force of the growth of the NTT Group. However, the current capital relationship between NTT and the NTT Data Group has issues such as conflicts of interest due to parent-child listing, complex decision-making processes, and the difficulty of the NTT Group fulfilling its accountability to shareholders of both parties when investing management resources in the NTT Data Group. We decided to make the NTT Data Group a wholly owned subsidiary in order to overcome these issues and further promote the direction that the NTT Group is aiming for.”
NTT DATA Group’s tender offer for the shares of NTT DATA Group will be carried out until June 19 (Thursday) for a wholly owned subsidiary of tNTT DATA Group. The purchase price will be 4,000 yen per share. The total purchase amount is expected to be approximately 2.3712 trillion yen.
If the tender offer fails to acquire all of the NTT Data Group’s shares, the plan is to make NTT DATA Group a wholly owned subsidiary through a demand for the sale of shares or a share consolidation.
After that, NTT Group companies and the NTT DATA Group will consider initiatives to create synergies through the acquisition of a wholly owned subsidiary.
President Shimada said, “Nothing has been decided at this point, but for example, we could work with NTT Communications to optimize sales to large corporations, collaborate with NTT TechnoCross in the field of AI technology, and collaborate with NTT Marketing Act ProCX and NTT Nexia to enhance BPO using IT services. We can also expect to strengthen collaboration with NTT Laboratories”.

NTT DATA Group will work on three main goals through this wholly owned subsidiary.
The first is “strengthening the portfolio of global solutions through flexible growth investments.” By utilizing the financial base of the NTT Group, the group will be able to make flexible growth investments and strengthen its focus areas.
President Sasaki Yutaka said, “We will actively invest in growth areas to strengthen our unique business portfolio. Specifically, we will consider investing in growth areas such as services that utilize AI technology, establishing a global presence in the North American market, data centers, and digital engineering.”
The second point is “strengthening collaboration between the resources and capabilities of the NTT Group.”
By combining the industrial knowledge of the NTT DATA Group with the research and development functions of NTT Group, we will accelerate the development of new services in both domestic and overseas businesses. In domestic businesses, we will strengthen the competitive advantage of our corporate business and expand business opportunities.
The third point is “accelerating decision-making and improving cost competitiveness.”
We will simplify the governance structure in global businesses and accelerate the speed of improving corporate value. Specifically, we will improve the capital structure and decision-making system at NTT DATA Inc., which is responsible for global business, and speed up decision-making regarding large-scale M&A and data center construction.
In addition, we will utilize the back office functions of the entire NTT Group to work on cost efficiency and productivity improvement.
Sasaki said, “Leveraging the on-site capabilities and uniqueness we have cultivated as part of NTT DATA Group, we will demonstrate even greater leadership in the global solutions business and contribute to improving the corporate value of NTT Group as an important core company.”
Shimada said, “When considering the growth of  NTT Group, global business will be at the center. First of all, NTT DATA Group needs to take the lead for  NTT Group. Considering our future business portfolio, the biggest growth opportunities will be in the business fields of  NTT DATA Group. First of all, we want to firmly establish our focus and then invest the resources of NTT Group there to achieve even greater growth”.

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