* NTT unit to buy Virtela Technology for $530 mln
* NTT Comm to take 80 pct stake in RagingWire for $350 mln
* NTT Comm aims to more than double cloud-related revenue by
* Japan IT companies buying overseas firms to bolster global
TOKYO, Oct 28 NTT Communications Corp said it
will gain control of two U.S. cloud computing firms in takeover
deals worth a combined 85.5 billion yen ($880 million), as
Japanese firms ramp up efforts to improve overseas networks
The unlisted long-distance and overseas calling unit of
Nippon Telegraph and Telephone Corp will buy Virtela
Technology Services Inc, which provides communications services
to corporations, and acquire an 80 percent stake in RagingWire
Denver, Colorado-based Virtela provides services to
corporate clients in more than 190 countries through local
partnerships, It will become a wholly owned subsidiary of the
Japanese company, helping it to offer data services globally
without licensing cables and lines in individual markets.
NTT Communications, which has data centres in Hong Kong and
Britain, will expand those operations in the United States with
the $350 million investment in California-based RagingWire.
NTT Communications aims to boost revenues from cloud
services above 200 billion yen by the year to March 2016, more
than double the figure for 2011/12, as it faces declining
revenue from voice services.
Cash-rich Japanese firms have been actively acquiring
overseas companies in recent years, including in the telecoms
and information technology sector. SoftBank Corp in
July completed its $21.6 billion purchase of Sprint Corp,
Japan's biggest overseas acquisition.