NTT/Verio details from Nikkei Net.
Monday, May 8, 2000
NTT Aims To Offer Full E-Commerce Services
TOKYO (Nikkei)--NTT Communications Corp. is trying to acquire U.S. data communications company Verio Inc. in order to offer a full range of e-commerce services in Japan and the U.S., industry analysts said.
At present, different types of Internet companies are involved in e-commerce services -- including telecom service providers that own communications networks, Internet service providers and content providers. This is proving an obstacle to developing and popularizing the services because the responsibilities of each provider are blurred. NTT Communications believes an integrated service will solve this problem.
Verio is a leading U.S. Internet service company, providing Net access and operating data centers for e-commerce in the U.S. and Europe. It is also building a telecom network covering the entire U.S.
The company's data center business, which administers data on e-commerce customers on behalf of online service firms, is expected to grow rapidly.
Acquiring Verio would give NTT Communications an immediate presence in the U.S. market, saving several years of effort, the analysts said.
Given the M&A spree among U.S. firms competing for leadership in the Net market, NTT Communications had to decide quickly about the purchase. "Other companies were also moving to acquire Verio," said President Masanobu Suzuki.
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NTT Communications To Acquire U.S. Data Telecom Firm
(The Nihon Keizai Shimbun Monday evening edition)
Monday, May 8, 2000
NTT Communications To Acquire U.S. Data Telecom Firm
TOKYO (Nikkei)--NTT Communications Corp. will try to acquire the 90% of U.S. data communications company Verio Inc. it does not already own for about 600 billion yen, the company announced Monday.
The long-distance and international phone company intends to use the acquisition to build a global communications network for e-commerce.
NTT Communications' current 10% stake in Verio makes it the largest shareholder in the U.S. firm.
NTT Communications will begin to purchase the rest of the Colorado-based company by May 17 through a tender offer of 60 dollars per share. It expects to take around four months to complete the purchase since the deal requires the approval of U.S. antitrust authorities.
Verio operates data management centers for e-commerce in the U.S. and Europe, and has more than 400,000 corporate customers in more than 100 countries.
NTT Communications will provide customers involved in online music distribution and shopping with communications services for the Asian market, where it has almost completed building a telecom network.
The NTT group firm will also provide multinational companies with outsourcing services, including building and managing global Internet-based communications networks. |
