TOKYO & WALTHAM, Mass.--()--NEC Corporation today announced a definitive agreement 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 US$449 million and covers all of IM's business, including Smart Suite Products, 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 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 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 (Operational Support Systems) solutions through the cloud, as a managed service, or as an in-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.
"Convergys' IM business has distinguished itself with a record of successful BSS implementations and exceptional professional services for leading international communications carriers," said Dr. Nobuhiro Endo, President of NEC. "The acquisition of the IM business will enable NEC to bring even greater value and benefits to the service provider industry."
"Innovative BSS is the foundation of differentiation and long-term success, as service providers increasingly compete by offering new, unique services and customer experience as opposed to connectivity alone," said Andrew Feinberg, President and CEO of NetCracker. "With over 2,500 skilled and experienced industry experts and more than 150 customers around the globe, the IM business is at the leading edge of innovation in revenue management and customer experience. We are excited to have this end-to-end offering as a part of NetCracker's portfolio and look forward to bringing it to service providers and other industry verticals."
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 Time 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 2012. UBS Investment Bank acted as exclusive financial advisor to NEC/NetCracker.
About NEC Corporation
NEC Corporation is a leader in the integration of IT and network technologies that benefit businesses and people around the world. By providing a combination of products and solutions that cross-utilize the company's experience and global resources, NEC's advanced technologies meet the complex and ever-changing needs of its customers. NEC brings more than 100 years of expertise in technological innovation to empower people, businesses and society. For more information, visit NEC at http://www.nec.com.
NEC is a registered trademark of NEC Corporation. All Rights Reserved. Other product or service marks mentioned herein are the trademarks of their respective owners. ©2012 NEC Corporation.
About NetCracker Corporation
NetCracker Technology, a subsidiary of NEC Corporation, is the leading provider of Telecom Operations and Management Systems to Communications Service Providers worldwide. www.NetCracker.com
NetCracker is a registered trademark of NetCracker Technology Corp. All other company or product names mentioned in this press release may be trademarks or registered trademarks of the respective companies with which they are associated.
About Convergys
Convergys Corporation (NYSE: CVG) is a global leader in relationship management. We provide solutions that drive more value from the relationships our clients have with their customers. Convergys turns these everyday interactions into a source of profit and strategic advantage for our clients.
For more than 30 years, our unique combination of domain expertise, operational excellence, and innovative technologies has delivered process improvement and actionable business insight to marquee clients all over the world.
Convergys has approximately 70,000 employees in 69 customer contact centers and other facilities in the United States, Canada, Latin America, Europe, the Middle East, Africa, and Asia, and our global headquarters in Cincinnati, Ohio. For more information, visit www.convergys.com
(Convergys and the Convergys logo are registered trademarks of Convergys Corporation.)