(WEB HOST INDUSTRY REVIEW) — Telecommunications giant AT&T (www.att.com) announced on Tuesday it is selling its Japan-based outsourcing services unit to network solutions provider Internet Initiative Japan (www.iij.ad.jp/en) for $100 million.
The Japanese unit currently has 1,600 Japanese customers and about 250 employees.
The outsourcing unit has already earned $300 million in revenue to date for 2010.
Through this acquisition, IIJ will provide its network solution to the company’s newly acquired customers, as well as WAN services to its client bases of over 6,500 corporate customers.
IIJ will also provide international services through business tie-up with AT&T Japan.
The acquisition will strengthen IIJ’s sales abilities as well as help it achieve higher customer satisfaction.
AT&T says it will continue to use the rest of its operations in Japan to serve its multinational corporate customers in Japan.
The teleco will continue its presence in the Japanese market through its AT&T Global Network, while it maintains its lead of the company’s existing network and infrastructure.
In order to offer a seamless transition of the outsourcing unit, AT&T has established a subsidiary that will comprise of all of its Japan-based outsourcing units.
AT&T will then sell this consolidated subsidiary to IIJ, which the Japanese firm will take full ownership of on September 1.
This is the second subsidiary AT&T has sold off in less than a month. In May the company sold its integrated solutions unit Sterling Commerce to IBM for approximately $1.4 billion in cash.
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