PRINCETON, N.J. – Japan’s NTT Data Corp. has agreed to acquire IT-services company Intelligroup Inc. for an estimated $199 million in cash.

The deal for the Princeton, N.J.-based Intelligroup, headed by Chief Executive Officer and President Vikram Gulati, will be made through NTT Data subsidiary Mobius Subsidiary Corp. Mobius will pay $4.65 per share for Intelligroup’s stock. That price was 21 percent above the average price of Intelligroup stock at the time the deal was constructed in June.

The board of directors of both NTT Data and Intelligroup approved the deal.

Intelligroup is an enterprise applications systems business providing consulting, implementation, testing, application management, infrastructure management, and other IT services primarily related to SAP, Oracle Corp. and Microsoft Inc. applications. The company has received industry plaudits for its enterprise resource planning products and ability to helps its customers reduce costs. The company is a partner of SAP, Oracle and Microsoft.

NTT Data said Intelligroup’s customers in the United States, United Kingdom, Denmark, Japan, India and the Middle East, complement its customer base for similar services. Specifically, NTT Data anticipates the acquisition gives it access to Intelligroup’s specialized knowledge of SAP and Oracle. The company also said it would benefit from “Intelligroup’s deep industry experience and solutions focused on the life sciences, high-tech and discrete manufacturing, and consumer packaged goods verticals and its efficient global delivery model, enabled by world-class delivery centers in India.”

Both companies stated that the combined companies will strengthen their ability to serve customers.

“We are extremely pleased to announce our alliance with Intelligroup, a company highly reputable in the ERP business, with top-class employees around the globe,” said Toru Yamashita, president and CEO of NTT Data. “We believe that through this alliance, we will gain access to Intelligroup's global operation network, which will allow us to provide higher quality services in more places and assist clients in the further innovation of their businesses.”

NTT Data is a subsidiary of Japan’s Nippon Telegraph and Telephone Corp. It offers a broad range of IT services including consulting, systems integration and IT outsourcing. NTT Data posted total revenues of $12.7 billion last year and has more than 34,500 employees.

“NTT Data’s size and global IT capabilities including data centers and cloud computing enhance significantly our ERP solution capability and also allow us to offer Total Outsourcing solutions. It enables us to offer enhanced vertical offerings, and greater geographic coverage to our customers,” said Intelligroup’s Gulati. “Further, this allows us to leverage the financial strength of NTT Data which enables us to make greater and more long-term investments in the business. The synergy between the two firms creates a formidable force that will enable us to win in the marketplace.”

Gulati joined Intelligroup in April 2005 as CEO and president. The two-decade IT industry vet, served as head of Wipro Ltd.’s global enterprise application solutions group prior to joining Intelligroup. In four years he grew Wipro’s ERP business from $20 million to $160 million.

Intelligroup had just over $126 million in revenue in 2009, down close to 20 percent from the previous year.

The company reported $33 million in revenue for its most recent quarter, up from the previous quarter, but still down 11.6 million compared to $37 million in revenue for the same period in 2009.