Aug. 1, 2008
NTT DATA Corporation
- The deal is an exceptional strategic fit and marks a further significant step for NTT Data in Europe
- Cirquent will continue to operate independently with its own management and brand
- BMW retains a significant stake in the company and remains an important customer
Tokyo/Japan and Munich/Germany - 1 August 2008. BMW AG and NTT Data Corporation today reached a definitive agreement to form a capital tie-up in which NTT Data will acquire 72.9 percent of the issued shares of Cirquent GmbH, a 98% owned subsidiary of BMW Group. As in the past, the remaining two percent of the shares will continue to be held within Cirquent GmbH. Both partners have agreed not to disclose the purchase price. The closing of the transaction is subject to approval by the competition authorities.
The transaction is part of NTT Data’s internationalization strategy, which the company has pursued in an effort to service multinational clients from Japan and elsewhere around the globe. In January 2008, NTT Data had acquired a majority stake in Bielefeld-based itelligence AG, one of the leading international full-service providers for solutions in the SAP environment. Today, NTT Data already employs approximately 2,600 people or 11 percent of its workforce outside of Japan.
Cirquent will continue to operate independently under its existing brand. NTT Data does not intend to integrate it with its other German subsidiary itelligence AG. NTT Data is committed to retaining Cirquent’s management and employees and does not plan any substantial operational changes after the closing of the transaction. In addition, NTT Data will support Cirquent’s growth strategy by providing for instance offshore resources, sales channels for Japanese multinational companies and project management methodologies.
“The transaction is beneficial for all parties involved”, Senior Executive Vice President Takashi Enomoto, commented on the transaction. “NTT Data further expands its international footprint with Cirquent as one of the top 10 IT consulting firms in Germany. Cirquent becomes part of a dedicated IT company and will be able to offer global services to its blue-chip clients such as the BMW Group.”
Friedrich Eichiner, member of the Board of Management of BMW AG responsible for Group and Brand Development, commented: “In NTT Data, we have found the ideal partner to ensure that Cirquent will continue to develop further in the future”, and added: “This transaction enables BMW Group to focus further on its core business.”
Takashi Enomoto concluded: “This is yet another example of our ‘win-win-win’ approach, which we call ‘IT partnership’ and which has proven successful in various acquisitions that we have done around the globe.”
Peter Broicher, Chief Executive Officer of Cirquent, added: “With our new shareholder, we can offer to our existing clients support in 21 countries around the globe. With our distinct expertise in the manufacturing, banking, insurance and telecommunications industries we are also in a good position to win additional business from the large multinational clients NTT Data serves. At the same time, we will benefit from the continued commitment of BMW Group as a shareholder and client.”
About NTT Data
NTT Data is a quoted subsidiary of Nippon Telegraph and Telephone Corporation (NTT). It offers a broad range of IT services including consulting, systems integration and IT outsourcing. NTT Data, which was ranked 15th position in IT services market, has about 23,000 employees and posted total revenues of over JPY 1 trillion (Euro 7.0 billion) for the year ended March 31, 2008. Since 2005, NTT Data has taken various steps to develop the international business, including the acquisition of the Revere Group in the US, the Shenzhen East Net Co., Ltd. in China and Vertex Software Pvt. Ltd. in India. In January 2008, NTT Data acquired a majority stake in German itelligence AG, one of the leading international full-service providers for solutions in the SAP environment. NTT Data has been actively pursuing IT partnership strategy for IT innovation with client companies to progressively expand the customer base and acquire development resources. For more information visit the NTT Data website: http://www.nttdata.com/
About Cirquent GmbH
Cirquent offers first-class consulting throughout the entire value added chain for banks, insurance companies, telecommunications and manufacturing companies. The services portfolio of the consulting company includes: industry-oriented strategy and process consulting; conceptual design; integration and implementation of individual solutions aimed to support business processes as well as the operation and maintenance of IT systems. Cirquent offers first-class competences in industry-specific processes, methods and technologies - in the areas of customer management, contact centres, finance transformation and application management. Cirquent’s goal is to deliver solutions tailored to the individual requirements of customers, to achieve more efficient business processes, increased business success and reduced costs. The high quality of its consultancy and more than 35 years’ experience has made Cirquent a valued partner of such leading companies as BMW Group, Deutsche Bõrse, Münchener Rück and T-Mobile Deutschland.
Based on its strong foundations and successful acquisition strategy, Cirquent, formerly the Softlab Group, has established itself as one of today’s leading German consultancy companies, as reflected in its ranking in the top ten of the Lünendonk List 2007. Headquartered in Munich, Cirquent operates out of five locations in Germany, and also has offices in the UK, Austria and Switzerland. In 2007, with a workforce of 1,747, the company generated sales of €286 million. Further information is available on: http://www.cirquent.de
For more information, please contact:
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Public Relations Department
NTT DATA Corporation
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Tel: +49 (0)69 921874-63
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