NTT Data is planning to acquire 60% stake in software subsidy of Matsushita mobile phone. It is a division of Nippon Telegraph and Telephone (NTT) which builds computer networks and provides maintenance services to various clients.

Matsushita Electric manufactures mobile phones and it is the second largest handset manufacturer in Japan. Matsushita is also the largest Plasma TV maker in the world. Panasonic Mobile Communications is a unit of Matsushita Electric Industrial Co Ltd. Panasonic Mobile & System Engineering Co Ltd makes mobile phones and base stations for cell phone networks across the world. It has about 1,000 employees and it expects13 billion yen ($123 million) in revenue for the year to March 2009. The company has declined to disclose the selling price and deal related financial information.

PMC hopes the capital alliance with NTT will boost the software unit's product quality. The acquisition will boost the sale of mobile based soft wares and improve its quality. The deal will further lead to increase competitiveness in the field of mobile phone software.

NTT, on the other hand will work on medical-related businesses and embedded software. The embedded software is pre-installed in mobile hardware and comes with other furnished electronic products like DVD recorders and camcorders. The demand of mobile related soft wares is increasing day by day with increase in mobile user density in the world.

The shares of Matsushita were closed down at 2,290 yen while NTT Data gained 1.2 percent to 417,000 yen prior to the announcement of acquisition. The benchmark Nikkei was ended down at 1.3%.