NTT Communications to acquire 70% stake in Frontline Systems Australia

May 11, 2011

2 Min Read

TOKYO and SYDNEY -- NTT Communications Corporation (NTT Com) and Frontline Systems Australia Pty Ltd (Frontline) jointly announced today that NTT Com will purchase 70% of the issued shares of the Australian firm, which provides IT infrastructure, IT consulting and managed services.

The alliance will enable NTT Com to expand its range of high-quality global ICT services to meet multinational companies' growing needs for globally seamless, one-stop solutions for networks, infrastructure and cloud provisioning.

Working closely with other NTT Group companies in Australia such as Dimension Data, NTT Com will provide high-quality ICT services for enterprises by integrating Frontline's server-related technologies with the NTT Group's network-integration, software-development and maintenance capabilities. NTT Com will also accelerate cloud services development by utilizing Frontline's subsidiary Harbour MSP's data center-related technologies.

Frontline is an experienced provider of ICT services, particularly those related to server and database technologies. Harbour MSP has earned an excellent reputation for its managed services and data center system integration. The company was established in 1993 and has grown into Australia;s largest, premier infrastructure solutions provider, with forecasted sales of AUD 277 million this fiscal year ending June 2011. Frontline has data centers, warehousing and sales operations in Brisbane, Sydney, Canberra, Melbourne, Adelaide and Singapore.

"As an organisation poised for further growth in the Australian market and beyond, Frontline views the involvement of NTT Com as an investor with tremendous excitement," expressed Steve Murphy, CEO of Frontline. "The alliance will mean that Frontline is bolstered by NTT Com's depth of knowledge and resources in networking and communications, while we continue to extend service offerings beyond our core strengths in infrastructure and managed services."

"This acquisition confirms and fortifies our strategy to be the ICT partner of choice both globally and now locally in Australia and New Zealand. The addition of the managed IT infrastructure professionals at Frontline Systems and its subsidiaries is a perfect complement to our subsidiary NTT Australia's well-established network business serving the rapidly evolving enterprise cloud market in the ANZ region," said Sadao Maki, Senior Executive Vice President of NTT Com.

NTT Communications Corp. (NYSE: NTT)

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