NEC To Acquire CSG For US$2.9 Bln To Accelerate Global Digital Transformation

KUALA LUMPUR, Oct 31 (Bernama) -- NEC Corporation (NEC) has announced a definitive agreement to acquire United States-based CSG Systems International Inc (CSG) for US$80.70 per share in cash, valuing the deal at approximately US$2.9 billion, or 438.5 billion Japanese yen, including debt. (US$1=RM4.19)

The transaction price represents a 17.38 per cent premium over CSG’s closing price of US$68.75 on Oct 28 and a 23.07 per cent premium to its 30-day volume-weighted average price (VWAP).

The acquisition strengthens NEC's position as a leader in next-generation digital solutions and accelerates artificial intelligence (AI) and cloud-driven innovation for customers across industries.

According to a statement, 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 Business Support Systems and Operational Support Systems, aligning naturally with CSG’s strengths.

The agreement has been unanimously approved by both companies' boards and 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.

-- BERNAMA