NEC to absorb patent service subsidiary to optimize IP resources

NEC Corporation will merge with NEC Patent Service, Ltd. (NEPAS) to streamline its intellectual property resources and accelerate related initiatives. NEPAS, currently responsible for patent applications, management, and competitor business trend analysis, will be integrated into NEC's Intellectual Property & Rule-Making Division. This simplified absorption-type merger, approved by NEC’s representative executive officer on October 21, 2025, will see NEC as the surviving entity and NEPAS dissolved, with no shares or other consideration allotted.

NEPAS, established on June 8, 1979, with JPY 30 million in stated capital and 60,000 issued shares, is entirely owned by NEC Corporation. NEC, with JPY 427,831 million in stated capital and 1,364,249,315 shares as of March 2025, reported JPY 3,423,431 million in revenue and JPY 184,664 million in net profit for the fiscal year ended March 31, 2025. NEPAS reported JPY 2,503 million in revenue and a JPY (28 million) net profit for the same period.

Post-merger, NEC's company name, location, representative, business, stated capital, and fiscal period will remain unchanged. The company anticipates the merger will have a negligible impact on its business performance.