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NTT Com to acquire Virtela for USD525m in cash
[October 28, 2013]

NTT Com to acquire Virtela for USD525m in cash


Oct 28, 2013 (M2 EQUITYBITES via COMTEX) -- NTT Communications Corporation (NTT Com), the ICT solutions and international communications business within NTT (NYSE:NTT), and Virtela Technology Services Incorporated, a 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 USD525m in cash.



According to the companies, Virtela's virtualised network services model combined with NTT Com's brand and strength will create the industry's most advanced services portfolio that enables enterprises to break free from the constraints of traditional network architectures and services.

Together, NTT Com and Virtela can 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.


Reportedly, 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. NTT Com will also upgrade its cloud-based network services with Virtela's network function virtualisation (NFV) technology to virtualise the functions of customers' network equipment, such as firewalls and WAN accelerators, enabling enterprises to benefit from instant service activation and significant cost reduction.

Also, this acquisition expands NTT Com's global network services coverage from 160 to over 190 countries/regions.

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