NEC to Acquire CSG, Strengthening Its Position as a Global Leader in Digital Transformation
NEC Corporation and CSG
Systems International, Inc. announced
they have entered into a definitive agreement under which NEC will acquire CSG
for US$80.70 per share in cash, for a total enterprise value of approximately
US$2.9 billion, or JPY438.5 billion, including debt. The transaction price
represents a 17.38% premium over CSG’s closing price of US$68.75 on October 28,
2025, and a 23.07% premium to the volume-weighted average price (VWAP) of CSG
common stock for the 30 days ending October 28, 2025.
The transaction strengthens NEC's
position as a leader in next-generation digital solutions and accelerates AI
and cloud-driven innovation for customers across industries. It will bring
together complementary software and services across digital transformation,
expanding NEC's software-as-a-service (SaaS) portfolio, customer footprint, and
global reach.
Adding CSG’s proven SaaS product
portfolio and strong global customer base to NEC and its subsidiary, Netcracker,
delivers meaningful value to customers through a diversified and expanded
product portfolio. The transaction will enable NEC to deliver a more
competitive offering in next-generation environments, such as global
communication service providers, and to leading brands in high-growth sectors
such as media, financial services, healthcare, retail and logistics. The
transaction builds on the capabilities of NEC’s subsidiary, Netcracker, which
provides a complementary global footprint and deep expertise in BSS (Business
Support Systems) and OSS (Operational Support Systems), aligning naturally with
CSG’s strengths.
The agreement has been
unanimously approved by both companies' Boards. The transaction is expected to
close within the 2026 calendar year, subject to the satisfaction of customary
closing conditions, including approval by CSG shareholders and receipt of
required regulatory approvals.
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