NTT expands U.S. footprint with Virtela, RagingWire deals worth $875M

Summary:One of the deals alone would expand NTT's global presence from 160 to more than 190 markets worldwide.

Japanese telecommunications giant NTT is expanding its cloud and datacenter assets not to mention its footprint in the United States through two deals worth a combination of approximately $875 million.

The first deal is the complete acquisition of cloud networking provider Virtela for $525 million. NTT will be merging Virtela's service and operational platforms with its global ICT infrastructure for enterprise customers. The integrated services are scheduled to be introduced to customers starting in 2014.

Furthermore, the merger would expand NTT's global presence from 160 to more than 190 markets. Denver-based Virtela, which employs approximately 400 people out of global operations and delivery centers across the U.S., India and the Philippines, already serves more than 500 corporate customers worldwide.

The second deal consists of an 80 percent stake in datacenter design firm RagingWire for $350 million. The investment would more than double NTT's existing datacenter presence in the United States.

Based out of Sacramento with roughly 300 employees, RagingWire owns 650,000 square feet of data center space across Northern California and Virginia with expansion plans already in place.

The agreement also brings in more datacenter infrastructure management tools. But the Sacramento-based business will continue to operate under the RagingWire brand name with current leadership retaining a minority interest in the company.

NTT confirmed in Monday's announcement that these purchases are intended to follow the company's international cloud business strategy, first unveiled in 2011. NTT has opened datacenters across Australia and Asia, namely in Japan, Hong Kong, Singapore, Malaysia and Thailand.

Topics: Telcos, Networking, Tech Industry

About

Rachel King is a staff writer for CBS Interactive based in San Francisco, covering business and enterprise technology for ZDNet, CNET and SmartPlanet. She has previously worked for The Business Insider, FastCompany.com, CNN's San Francisco bureau and the U.S. Department of State. Rachel has also written for MainStreet.com, Irish Americ... Full Bio

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