NTT to Acquire Virtela

NTT Com, the ICT solutions and international communications business within Japanese telco giant NTT, has agreed to acquire Virtela for $525 million (USD) in cash.

“Virtela’s virtualized network services model combined with NTT Com’s brand and strength will create the industry’s most advanced services portfolio that enables enterprises to break free from the constraints of traditional network architectures and services,” NTT said in a statement.

Both companies have channel partner programs, but plans for channel integration have yet to be revealed.

Virtela will enhance NTT’s cloud portfolio so that together they will provide cloud networking services, asset-light branch office networking, a Tier-1 IP backbone and end-to-end cloud compute, storage and network services globally. NTT Com said that it will upgrade its cloud-based network services with Virtela’s network function virtualization (NFV) technology to virtualize the functions of customers’ network equipment, such as firewalls and WAN accelerators, offering enterprises instant service activation and cost reduction.

“Virtela’s virtualized network services model combined with NTT Com’s brand and strength will create the industry’s most advanced services portfolio that enables enterprises to break free from the constraints of traditional network architectures and services,” said Vab Goel, Virtela founder and general partner at Norwest Venture Partners.

The integration of their respective operations, services and networks will lead to services to be introduced on a combined basis to serve customers from 2014, NTT said, using Virtela’s service activation and advanced management infrastructure. The acquisition also expands NTT Com’s global network services coverage from 160 to more than 190 countries and regions.

“Virtela is well known for its strong technology, networking expertise, global reach and highly regarded services,” said Akira Arima, CEO of NTT Com. “As we advance our global cloud vision, we expect to continue offering enterprise customers the highest possible value in services ranging from branch office networking to large-scale cloud migration.”

NTT Com offers global total ICT outsourcing for the safe and reliable transition of customer ICT environments to the cloud. Its existing offerings include Arcstar Universal One virtualized network services and customer-premise-to-data center and cloud-to-cloud services, utilizing software defined networking technologies.

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