NTT DATA Bundle
Who Owns NTT DATA?
The ownership of NTT DATA Group Corporation is a key factor in its strategic direction. A significant recent development is its parent company's move to acquire all publicly listed shares, taking the IT services giant private.
This consolidation of ownership, completed in June 2025, aims to enhance decision-making and future growth initiatives for the company.
NTT DATA Group Corporation, a global leader in IT services, has a history rooted in Japan's telecommunications sector. Established in 1967, it evolved from a division within Nippon Telegraph and Telephone Public Corporation to a separate entity in 1988, eventually becoming NTT DATA Group Corporation in 2023. The company offers a wide array of services, including consulting and digital transformation, and is recognized for its contributions to social infrastructures through large-scale systems. Its comprehensive service portfolio, which can be analyzed using frameworks like the NTT DATA BCG Matrix, spans across numerous industries worldwide.
Who Founded NTT DATA?
NTT DATA's origins are not tied to individual founders but rather to a government initiative. Its history begins in 1967 with the Data Communications Division of the Nippon Telegraph and Telephone Public Corporation, established to advance Japan's computing sector.
Inception as a Division
NTT DATA's journey started in 1967 as the Data Communications Division of the Nippon Telegraph and Telephone Public Corporation. This division was instrumental in promoting computer usage and developing national systems in Japan.
Privatization and Spin-off
Following the privatization of its parent company in 1985, NTT DATA Communication Systems Corporation was established as an independent entity in May 1988. This marked a significant step in its corporate evolution.
Sole Early Ownership
NTT Corporation became the sole early owner of NTT DATA. There were no external investors during its formative years, as it operated as a wholly owned subsidiary.
Founding Vision
The founding vision, embedded within NTT's mission, focused on developing large-scale systems for social infrastructure. This guided NTT DATA's early trajectory in the information service industry.
No External Seed Funding
During its initial phase, NTT DATA did not involve angel investors or friends and family in its ownership structure. Its growth was entirely supported by its parent corporation.
NTT Corporation's Role
NTT Corporation, established in 1985, is the primary entity from which NTT DATA originated. This relationship defines the NTT DATA parent company structure.
The early ownership of NTT DATA is exclusively linked to its parent company, NTT Corporation. This structure means that NTT Corporation holds the controlling stake, influencing the strategic direction and operations of NTT DATA. Understanding this foundational relationship is key to grasping the NTT DATA ownership landscape and its broader corporate structure, which has evolved significantly through various Target Market of NTT DATA and global integrations.
Key Aspects of Early Ownership
NTT DATA's early ownership was singular and directly tied to its corporate parent, NTT Corporation. This established a clear line of control and strategic alignment from its inception.
- NTT DATA originated from the Data Communications Division of Nippon Telegraph and Telephone Public Corporation in 1967.
- Following the privatization of its parent in 1985, NTT DATA Communication Systems Corporation was spun off in May 1988.
- NTT Corporation became the sole owner, with no external investors involved in the initial stages.
- The company's early focus was on developing large-scale systems for social infrastructure, reflecting NTT's broader mission.
- This ownership structure means NTT Corporation is the NTT DATA parent company.
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How Has NTT DATA’s Ownership Changed Over Time?
The ownership of NTT DATA has evolved significantly since its 1988 spin-off from Nippon Telegraph and Telephone Corporation (NTT). Initially a wholly-owned subsidiary, it became publicly traded in 1995, with NTT consistently maintaining a controlling stake. A pivotal shift occurred in May 2025, when NTT initiated a tender offer to acquire the remaining shares, culminating in NTT DATA becoming a wholly-owned subsidiary by June 2025.
| Shareholder | Percentage of Voting Rights (as of March 31, 2025) | Number of Shares (as of March 31, 2025) |
|---|---|---|
| Nippon Telegraph and Telephone Corporation (NTT) | 57.73% | 809,677,800 |
| Nikko Asset Management Co., Ltd. | 2.19% | |
| Daiwa Asset Management Co., Ltd. | 2.14% | |
| BlackRock, Inc. | 1.97% | |
| The Vanguard Group, Inc. | 1.74% | |
| Mutual Funds & ETFs (Collective) | 18.55% | |
| Other Institutional Investors | 77.70% | |
| Public Companies & Retail Investors | 3.75% |
Prior to its delisting, NTT Corporation was the dominant shareholder in NTT DATA Group Corporation, holding approximately 57.73% of the voting rights as of March 31, 2025. This majority stake positioned NTT as the primary influence over NTT DATA's strategic direction. Other significant institutional investors included Nikko Asset Management Co., Ltd. at 2.19%, Daiwa Asset Management Co., Ltd. at 2.14%, BlackRock, Inc. at 1.97%, and The Vanguard Group, Inc. at 1.74%. Collectively, mutual funds and ETFs accounted for 18.55% of shares outstanding, with other institutional investors holding a substantial 77.70%. Public companies and retail investors comprised the remaining 3.75% as of June 19, 2025.
NTT DATA's Ownership Transformation
NTT's acquisition of NTT DATA marked a significant shift in the company's corporate structure. This move aimed to integrate operations more closely and enhance global competitiveness.
- NTT initiated a tender offer in May 2025 to acquire the remaining 42.27% of NTT DATA.
- The total acquisition cost was approximately ¥2.4 trillion (around US$16.04 billion).
- The tender offer was completed by June 19, 2025.
- NTT DATA became a wholly-owned subsidiary of NTT, leading to its delisting from the Tokyo Stock Exchange.
- This consolidation is expected to streamline decision-making processes.
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Who Sits on NTT DATA’s Board?
As of June 30, 2024, the Board of Directors for NTT DATA Group Corporation comprised 11 directors, with a majority of six being independent outside directors. This composition was designed to foster transparency, ensure sound business management, and facilitate effective decision-making.
| Director Type | Number |
|---|---|
| Total Directors | 11 |
| Independent Outside Directors | 6 |
| Female Independent Outside Directors | 3 |
| Non-Japanese Independent Outside Directors | 1 |
Prior to its full acquisition, NTT Corporation held a significant majority of voting rights in NTT DATA, amounting to 57.73% as of March 31, 2025. While NTT DATA maintained operational independence, crucial strategic decisions were subject to discussion and reporting to its parent company. NTT also provided input on director nominations, though the final selection rested with NTT DATA's Board to maximize enterprise value. The standard voting mechanism was one-share-one-vote, but NTT's substantial ownership provided it with considerable influence. Shareholders could exercise their voting rights conveniently through the internet.
NTT DATA's Evolving Governance and Ownership
NTT DATA's corporate structure underwent a significant transformation in July 2023, adopting a holding company model. This move was intended to enhance business management flexibility and governance. Further strengthening its oversight, NTT Group announced plans in May 2025 for NTT DATA to transition from an Audit & Supervisory Board to an Audit & Supervisory Committee. This adjustment aims to improve strategic discussions and bolster the Board's monitoring capabilities. Following the completion of NTT's tender offer on June 19, 2025, which made NTT DATA a wholly-owned subsidiary, the ultimate voting power is now fully consolidated under the NTT Corporation, aligning NTT DATA's strategy with its parent company's overall objectives. This shift solidifies NTT Corporation's position as the primary entity determining NTT DATA ownership and strategic direction, impacting its Competitors Landscape of NTT DATA and future growth prospects.
- NTT Corporation is the ultimate beneficial owner of NTT DATA.
- NTT DATA's business structure now fully integrates with NTT Corporation's strategy.
- The transition to a wholly-owned subsidiary centralizes ultimate voting power.
- Governance enhancements include a move to an Audit & Supervisory Committee.
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What Recent Changes Have Shaped NTT DATA’s Ownership Landscape?
The ownership landscape of NTT DATA has undergone a significant transformation with the complete acquisition of NTT DATA Group Corporation by its parent company, Nippon Telegraph and Telephone Corporation (NTT). This strategic move, finalized in 2025, consolidates NTT's control and aims to enhance global operations.
| Entity | Ownership Status | Key Details |
|---|---|---|
| NTT DATA Group Corporation | Wholly owned subsidiary of NTT Corporation | Delisted from Tokyo Stock Exchange following acquisition. |
| Nippon Telegraph and Telephone Corporation (NTT) | Parent Company and Sole Shareholder | Acquired remaining publicly held shares in a tender offer completed in June 2025. |
This full acquisition by the NTT Corporation signifies a pivotal moment in the company's history, aligning with strategic objectives to streamline operations and bolster international competitiveness. The move is expected to foster greater integration of resources and financing capabilities for NTT DATA's global ventures.
Financial Performance Highlights
For the fiscal year ending March 31, 2025, NTT DATA Group Corporation projected consolidated revenue of ¥4.43 trillion, a 1.4% increase year-over-year. Operating profit was forecast at ¥336 billion, an 8.5% increase.
Strategic Investments in Infrastructure
NTT DATA is investing over $10 billion in its global data center business through 2027. In 2024 alone, $2.9 billion was allocated, supporting the expansion of AI and cloud infrastructure.
Subsidiary Performance
NTT DATA Business Solutions AG reported strong results for fiscal year 2024/25, with revenue growing 14.7% to 1.85 billion euros. EBIT surpassed 100 million euros for the first time, reaching 109.9 million euros.
Acquisition Activity
Recent strategic acquisitions include ProvenTech in June 2024 by NTT DATA Business Solutions, further expanding its service portfolio. This aligns with the Brief History of NTT DATA and its growth trajectory.
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