NEC to acquire CSG Systems for $2.89 bn to boost IT services

NEC Corporation announced its resolution to acquire CSG Systems International, Inc., a U.S.-based software company specializing in telecom and broadband operators, through its North American subsidiary, NEC Corporation of America. The transaction, valued at approximately $2,887 million, is expected to close by calendar year 2026, pending shareholder and regulatory approvals. This acquisition will strengthen NEC's IT services and social infrastructure segments by leveraging CSG's customer base and software solutions for customer experience and payments across various industries.

The acquisition of CSG, headquartered in Colorado, USA, is set to bolster NEC’s digital transformation (DX) solutions. Both companies’ offerings are geographically and segmentally complementary, with Netcracker Technology Corporation, an existing NEC subsidiary, providing BSS/OSS solutions globally. This move aims to enhance NEC’s high-value-added software and services business for telecommunications companies and expand DX-related solutions to a wider range of industries.

The funding for the acquisition will come from NEC's existing cash on hand and external debt financing, with no new share issuance planned. Meanwhile, NEC reported robust financial results for the first half of FY26/3, with Non-GAAP operating profit reaching JPY127.5 billion, a JPY62.6 billion increase year-over-year, driven by strong performance in domestic IT and aerospace/national security sectors. Consequently, NEC has revised its full-year FY26/3 Non-GAAP operating profit forecast upwards to JPY340 billion.