UPDATE 1-Japan’s NTT Data to buy Keane for 100 bln yen – Nikkei

Oct 21 (BestGrowthStock) – Japan-based IT services company NTT Data
Corp (9613.T: ) agreed to buy Boston-based Keane Inc for more
than 100 billion yen ($1.23 billion) to access blue-chip
clients in the United States, the Nikkei business daily
reported.

NTT, which plans to raise its overseas sales to 300 billion
yen from roughly 70 billion yen in fiscal 2009, plans to
purchase all outstanding shares of Keane, marking its biggest
acquisition, the daily said.

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

The paper said both companies are in the final stages of
negotiations to reach an agreement by the end of the month.

NTT will get access to Keane’s research and development
bases in India and elsewhere, the paper said.

Earlier in the year, NTT agreed to buy New Jersey-based
Intelligroup Inc (ITIG.OB: ) for about $199 million through an
all-cash tender offer. [nSGE65D0J7]

Japanese companies have stepped up acquisitions of foreign
businesses by 20 percent in the January-September period, the
paper said.

Making the most of their cash reserves and the stronger
yen, more Japanese firms will likely turn to overseas mergers
and acquisitions to propel global expansion, the paper said.

As of March 31, non-financial private-sector businesses in
Japan held 203 trillion yen in cash reserves, the daily added.
($1=81.61 Yen)
(Reporting by Isheeta Sanghi in Bangalore; Editing by Don
Sebastian)

UPDATE 1-Japan’s NTT Data to buy Keane for 100 bln yen – Nikkei