The Japanese IT company NEC Corporation has announced that it will acquire the US-based Convergys Corporation’s global information management (IM) business for $449m, in a bid to expand new telecom equipment sales abroad.
Convergys’s global IM business, which specialises in business support systems (BSS), has more than 2,500 skilled and experienced industry experts and over 150 customers worldwide.
Nobuhiro Endo, president of NEC, said: “Convergys’s IM business has distinguished itself with a record of successful BSS implementations and exceptional professional services for leading international communications carriers. The acquisition of the IM business will enable NEC to bring even greater value and benefits to the service provider industry.”
After completion of the deal, Convergys’s IM business will be integrated into NEC’s subsidiary NetCracker Technology Corporation, which will be responsible for all the business operations of the combined entity.
Jeff Fox, president and CEO of Convergys, said: “NEC is acquiring a well-recognised business, with solid client relationships, a strong solutions portfolio and a very talented base of employees.
“NEC’s established position in the industry, global scale, and commitment to invest in the business will benefit the customers and employees of IM. In return, the proceeds from the transaction further strengthen our balance sheet and allow us the financial flexibility to invest in our business and return capital to shareholders.”
The deal is expected to be closed by the end of the second quarter of 2012.