July 4 (Bloomberg) -- NTT Data Corp., Japan’s second-largest computer services provider, intends to buy more companies abroad to help reach its target of averaging 10 percent annual profit growth over the next four years.
“There’s no doubt that acquisition is a very important strategy,” President Toshio Iwamoto said July 2 in an interview, without identifying any prospective purchases. “Overseas will be important, as we can expand our coverage.”
Buying companies outside Japan is also part of the company’s plan to boost sales by between 200 billion yen ($2.5 billion) and 300 billion yen over four years, Iwamoto said July 2 in Tokyo. NTT Data, a unit of Nippon Telegraph & Telephone Corp., has announced plans to acquire 21 companies in the past three years including Boston-based Keane International Inc. and Italy’s Value Team SpA, according to data compiled by Bloomberg.
The Tokyo-based computer services provider is also trying to cut costs by automating more programming tasks, Iwamoto said.
The target to raise profit 10 percent a year is derived from NTT Data’s goal to raise earnings per share to 20,000 yen in the year ending March 2016 from 10,854 yen last fiscal year, he said. Earnings per share have fallen 4.2 percent on average over the past five years, according to data compiled by Bloomberg.
Earnings per share will probably rise about 25 percent to 13,547 yen in the year ending March 31, 2013, according to the company’s own forecast.
Itelligence AG, majority owned by NTT Data, yesterday announced the acquisition of London-based Blueprint Management Systems Ltd. NTT Data won’t disclose the value of the transaction, spokesman Takanori Iwauchi said by phone.
NTT Data fell 0.2 percent to 243,200 yen at the close in Tokyo trading.
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