NTT DATA, the Japanese information technology services company, is set to acquire Keane International, a Boston-based company, majority owned by Citigroup Venture Capital International Technology Holdings.
The financial terms were not disclosed. Keane will merge with an NTT subsidiary and become wholly owned by NTT. The transaction is expected to close in December, subject to approvals.
Keane employs a total of 12,500 professionals, with a significant proportion of them in India, with large centres in Bangalore and Chennai. Caritor, an IT services company started by Wipro veteran Mani Subramanian, took over Keane in an estimated $1-billion (then Rs 4,700 crore) deal nearly three years earlier.
Subramanian, after this merger with Keane, became chairman of the company while retaining the Keane brand name. Caritor initially raised $15 million from Citigroup Venture Capital and was further funded by CVCI in a leveraged deal to acquire Keane, which resulted in CVCI holding a significant majority.
The current transaction is part of NTT DATA’s strategy to accelerate its globalisation and boost its overseas presence. Through this, it will deepen its industry expertise, gain access to US blue chip clients, as well as acquire new relationships in the UK and Australia.
NTT DATA will also gain enhanced operational know-how regarding global delivery, which will support its IT services business and enable the provision of vertically-focused IT solutions in the US and abroad. NTT recently acquired Hyderabad-based Intelligroup for close to Rs 900 crore and is aggressively looking to expand its footprint in India, including having had discussions to pick up significant stake in Patni Computers.
“Keane’s uniqueness since its integration with Caritor has been its exceptional delivery and personalized service through a global presence,” stated Mani Subramanian. “Becoming part of a globally known player like NTT DATA is a natural evolution, helping our clients with an even wider global presence and stronger technical infrastructure backing.”
