NTT DATA, Keane announce definitive merger agreement

BOSTON, USA: NTT DATA Corp. and Keane Inc. announced that NTT DATA and Keane’s parent company, Keane International Inc. have entered into a definitive merger agreement under which Knight Subsidiary Corp., a wholly-owned subsidiary of NTT DATA, will merge with Keane International, resulting in Keane becoming a wholly-owned subsidiary of NTT DATA.

The transaction is subject to customary closing conditions and regulatory compliance approvals. Keane International is majority owned by Citigroup Venture Capital International Technology Holdings LCC (“CVCI”). Terms of the deal were not disclosed.

Bob Khanna, MD of CVCI and Keane International Board member, said: “We are pleased with the transaction and the vital role Keane will play in increasing NTT DATA's global footprint. Equally, NTT DATA's brand, resources and capabilities will add value to Keane's clients and create opportunities for our people.”

Continuing to be headquartered in Boston, Keane provides a broad range of IT services related to custom application development and management, enterprise application services, infrastructure solutions, and business process outsourcing to respected companies and government agencies in the United States as well as public and private sector clients in Europe and Asia Pacific.

It also has significant global delivery capabilities with solutions centers throughout India and Canada that provide clients a cost-effective mix of skilled resources that are deployed to deliver seamless end-to-end solutions.

The transaction is part of NTT DATA’s strategy to accelerate its globalization and boost its global portfolio and overseas presence. Through this transaction, NTT DATA 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.

“This transaction with Keane will allow us to provide comprehensive IT services including system development and management of mission critical systems in North America,” stated Toru Yamashita, president and CEO of NTT DATA.

“Keane has a superior reputation in the area of application and infrastructure services, as well as deep industry expertise. I believe that this, combined with their unique global delivery model and our global scale, offers more cost-effective and higher value solutions to our customers.”

For Keane, the transaction makes the company part of one of the largest global IT service providers and will provide access to NTT DATA’s European and Asian businesses, which will make it possible for Keane to support its customers on an even more global basis. It also creates new opportunities for Keane to offer expanded services and capabilities in the enterprise applications space leveraging NTT DATA’s already strong global SAP presence.