Japan's NTT Comm to buy 2 U.S. cloud computing firms -source

Reuters

TOKYO, Oct 28 (Reuters) - NTT Communications Corp plans tobuy two U.S. cloud computing firms for up to 100 billion yen ($1billion) combined, a source with knowledge of the matter said,as Japanese firms ramp up efforts to improve overseas networksthrough acquisitions.

The unlisted long-distance and overseas calling unit ofNippon Telegraph and Telephone Corp will buy VirtelaTechnology Services Inc, allowing it to offer data servicesglobally without licensing cables and lines in individualmarkets.

Denver, Colorado-based Virtela provides services tocorporate clients in more than 190 countries through localpartnerships.

Information on NTT Communications' planned acquisition of asecond U.S. cloud-related firm was not immediately available.

An NTT Communications spokesman declined to comment but saidPresident Akira Arima was due to hold a news conference at 4:30p.m. (0730 GMT) in Tokyo.

NTT Communications, which operates data centres in Hong Kongand Britain, aims to boost revenues from cloud services above200 billion yen by the business year to March 2016, more thandouble the figure for 2011/12, as it grapples with decliningrevenue from voice services.

Cash-rich Japanese firms have been actively acquiringoverseas companies in recent years, including in the telecomsand information technology sector where SoftBank Corp in July completed its $21.6 billion purchase of Sprint Corp,Japan's biggest overseas acquisition.

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