CORRECTED – CORRECTED-UPDATE 2-Japan’s NTT Data to buy Keane for $1.2 bln-Ni

(Corrects figure in penultimate paragraph to $199 million,
adding dropped word ‘million’)

* NTT Data eyes Boston firm for U.S. blue chip clients-paper

* Deal comes as NTT Data looks to lift overseas sales

* Y100 bln would be NTT Data’s biggest-ever acquisition

* Japan buys of foreign firms up 20 pct in Jan-Sept-paper
(Adds company comment, details, background)

TOKYO, Oct 21 (BestGrowthStock) – Japanese IT services company NTT
Data Corp (9613.T: ) will buy U.S. firm Keane Inc for more
than 100 billion yen ($1.2 billion), as it looks to make a major
push into the world’s biggest IT market, the Nikkei business
daily said on Thursday.

NTT Data has been buying up IT firms around the globe in the
past five years or so, and the acquisition of Boston-based Keane
would mark its biggest deal and the latest example of a Japanese
company taking advantage of a strong yen to snap up assets
overseas.

Shares in NTT Data, 54 percent-owned by Japan’s biggest phone
company NTT (9432.T: ), gained 1.9 percent and outperformed the
overall market.

Both companies are in the final stages of negotiations to
reach an agreement by the end of the month, which will allow NTT
Data to access Keane’s blue-chip clients in the United States as
well as research and development bases in India and elsewhere,
the paper said.

NTT Data, which aims to lift its overseas sales to 300
billion yen by the 2012 business year from roughly 70 billion yen
in fiscal 2009, plans to purchase all outstanding shares of
Keane, the paper said.

A Citigroup Inc (C.N: ) investment unit currently owns
roughly half of Keane, while Keane’s employees own the
rest of the firm, it added.

NTT Data said in a statement regarding the report that it was
not based on information supplied by them.

The yen’s rise to a 15-year high against the dollar (JPY=: )
has helped reignite a push by Japanese companies to snap up
assets abroad to secure growth outside their sluggish home
market.

The number of foreign acquisitions by Japanese firms grew by
about 20 percent in the January-September period, the
paper said.

NTT Data has already carried out at least seven acquisitions
this year, a company spokesman said, including a $199 million
deal to buy New Jersey-based Intelligroup Inc [ID:nSGE65D0J7].

Its parent firm recently took over South Africa’s Dimension
Data (DDTJ.J: ).
($1=81.61 Yen)
(Reporting by Sachi Izumi and James Topham in TOKYO and Isheeta
Sanghi in BANGALORE; Editing by Joseph Radford)

CORRECTED – CORRECTED-UPDATE 2-Japan’s NTT Data to buy Keane for $1.2 bln-Ni