NTT Com To Buy Virtela For $525 Mln In Cash

(RTTNews) - NTT Communications Corp., the ICT solutions and international communications business within Nippon Telegraph and Telephone Corp. (NTT), announced Monday that it has entered into a definitive agreement to acquire Virtela Technology Services Inc., for about $525 million in cash. NTT Communications also said it will acquire about 80 percent equity interest in RagingWire Data Centers, for $350 million.

Denver, Colorado-based Virtela is a global managed and cloud network. NTT Com said the acquisition is expected to expand its global network services coverage from 160 to more than 190 countries/regions. Tokyo, Japan-headquartered NTT provides fixed and mobile voice related services.

Virtela, which has global operations and delivery centers in the U.S., India and the Philippines, serves more than 500 customers worldwide. It employs 400 people.

Akira Arima, CEO of NTT Com stated, "As we advance our Global Cloud Vision, we expect to continue offering enterprise customers the highest possible value in services ranging from branch office networking to large-scale cloud migration."

Separately, NTT Communications Corp., announced it will acquire about 80 percent equity interest in RagingWire Data Centers, a provider of data center services in the U.S., for $350 million. The acquisition follows a definitive agreement reached with RagingWire shareholders.

RagingWire has approximately 300 employees. NTT Com said the acquisition will more than double its data center space in the U.S. RagingWire's founders and management team will continue to operate the company as a platform under the RagingWire brand and maintain a minority interest in the firm.

RagingWire has annual revenues of about $85 million.

NTT closed Friday's regular trading at $26.18 on the NYSE.