NEC Corporation has agreed to acquire Convergys Corporation’s Information Management (IM) business, which is recognized for its industry-leading record of delivering Business Support Systems (BSS) transformations to communications service providers around the world. The transaction is valued at $449 million US and covers all of IM’s business, including Smart Revenue Solutions, across different verticals, including communications, utilities, and logistics.
The acquisition underscores NEC Corporation’s long-standing commitment to offering innovative solutions to the communications industry, enabling service providers to transform their business and successfully compete in a rapidly changing environment. The IM business has enabled service providers around the world to transform their BSS environment and create the foundation for next-generation billing, customer care, and revenue management.
Following the acquisition, the IM business and organization will be integrated into NetCracker Technology Corporation, a subsidiary of NEC. NetCracker will be responsible for all business operations of the combined entity. With this acquisition, NetCracker will add key BSS expertise, software, and services to its market-leading Telecom Operations and Management Solutions (TOMS) suite. The combination of IM’s BSS products and NetCracker’s TOMS solutions will create a compelling end-to-end portfolio that will bring experience and innovation to service providers and other industry verticals — whether they access BSS/OSS solutions through the cloud, as a managed service, or as an on-premise system.
The combined resources and assets of NEC, NetCracker, and IM — including software, services, data centers, and R&D investment — will create a Telecom software-focused business that is unprecedented in its scale and size, and will give service providers the industry’s most comprehensive set of TOMS solutions and services anywhere in the world.
NEC’s communications carrier business features a superior lineup of software, services, and network infrastructure that helps service providers rapidly deploy and monetize LTE (Long Term Evolution) infrastructure, Mobile Backhaul, Carrier Cloud Computing, undersea cable systems, and more. These systems enable service providers to create globally competitive and distinctive business models. The continued success of NEC’s carrier business has contributed substantially to NEC’s total net sales of 3,115 billion yen (US $ 37.535 billion) in the financial year which ended March 2011. NEC’s carrier business spearheads NEC’s mid-range goals to further expand its international markets and software services.
The acquisition is scheduled to be completed by late second quarter of calendar year 2012.
UBS Investment Bank acted as exclusive financial advisor to NEC/NetCracker.