Japanese IT services company NTT DATA Corporation is to acquire Intelligroup, a US firm with a big presence in India, for about $199 million in an all-cash deal.

Mobius Subsidiary Corporation, an NTT DATA arm, will make an offer to purchase all outstanding shares of Intelligroup common stock for $4.65 a share at a 21.1 per cent premium to Intelligroup's average closing stock price in the last three months.

Intelligroup has centres in Hyderabad and Bangalore. Only this year it announced its decision to focus on the Indian market, driven by a marketing office in Mumbai. The enterprise applications systems integrator provides consulting, implementation, testing, application management and infrastructure management.

The purchase will complement NTT DATA's services and solutions business. The transaction would give us access to Intelligroup's client base and specialised knowledge of SAP and Oracle, Mr Toru Yamashita, President and CEO of NTT DATA, said.

The tender offer for the acquisition would begin in the next few days and close in three weeks. The tender offer is conditional on the tender of more than a majority of Intelligroup's outstanding shares on a fully-diluted basis and other stipulations, including customary regulatory approvals. The transaction is not conditioned on financing, a combined press release said here.

SB Asia Infrastructure Fund, LP and Venture Tech Assets Private Ltd, which collectively hold about 63 per cent of the target company's common stock, have agreed to participate.