NEC to Acquire Convergys Data Management Business for US$449 Million
NEC will acquire the information management business of Convergys for about US$449 million, to strengthen its telecommunications software products targeted at large carriers, it said Thursday.
The Japanese conglomerate said the new acquisition will be integrated into its NetCracker subsidiary, and used to strengthen software offerings in areas such as billing and customer relations. The unit of Convergys being purchased by NEC has a suite of products aimed at a broad range of industries, including utilities and logistics, but NEC said it will be mainly focused on communications after the purchase.
NEC is a major manufacturer of hardware aimed at large carriers, from mobile infrastructure to data centers to undersea cables. It is also aggressively expanding its software and services offerings, and hoping to leverage its acquisitions into generating more revenue outside of Japan.
The acquisition is set to be completed in the first half of this year.
NEC acquired NetCracker in October of 2008, for about US$300 million. The Massachusetts-based software vendor is known for helping ISPs roll out so-called "triple play" services combining voice, video and Internet access, which include VoIP (voice over Internet Protocol) and IP-based television services.