×
Home Companies Industry Politics Money Opinion LoungeMultimedia Science Education Sports TechnologyConsumerSpecialsMint on Sunday
×

Japanese IT major to buy majority stake in Vertex

Japanese IT major to buy majority stake in Vertex
Comment E-mail Print Share
First Published: Fri, Nov 16 2007. 12 54 AM IST

NTT Data Corp. president and CEO Toru Yamashita
NTT Data Corp. president and CEO Toru Yamashita
Updated: Fri, Nov 16 2007. 12 54 AM IST
Pune: Japan’s largest IT services company, NTT Data Corp.,on Thursday said it is acquiring 68.7% stake in Pune-based Vertex Software Pvt. Ltd. Vertex is engaged in product development, mobile and Web applications development.
NTT Data Corp. president and CEO Toru Yamashita
The acquisition, for an undisclosed amount, will give NTT Data global delivery capabilities as the company is in the process of offshoring its work and globalizing operations, said Shinichi Yamada, chief technology officer and executive vice-president of the company.
Mitsui & Co. of Japan and Logicsoft Inc. of the US that had initially invested in Vertex, will transfer their 10% and 5% stakes, respectively, to NTT Data. The board of directors of both the companies have approved the transaction and the equity transfer process is expected to be complete by December, company officials said.
NTT Data, a subsidiary of Nippon Telegraph and Telephone Corp., will leverage Vertex’s offshoring know-how for markets in the US and Europe where it already has significant presence.
Some 50% of the Indian company’s revenues currently come from the US while the remaining come from its operations in Japan.
For the Japanese company, Vertex is a perfect fit in other ways, too—just under 100 of its 200 employees speak Japanese, which is a big positive as Japanese businesses struggle with English language translations.
In addition, the company will use Vertex’s skills in mobile applications, where it is not present currently, to grow its business.
Comment E-mail Print Share
First Published: Fri, Nov 16 2007. 12 54 AM IST