NEC reorganizes domestic fire and disaster prevention business

NEC Corporation announced a corporate split to transfer its domestic fire and disaster prevention business, including maintenance, product development, manufacturing, and service provision, to NEC Networks & System Integration Corporation. The transaction involves two absorption-type splits.

First, NEC will transfer the business to NESIC Holdings, Ltd., a wholly-owned subsidiary established on May 14, 2025, with JPY 10 million in capital. Subsequently, NESIC Holdings, Ltd. will transfer the same business to NEC Networks & System Integration Corporation, a wholly-owned subsidiary with JPY 13.1 billion in capital. This aligns with NEC’s previous announcement on October 29, 2024, regarding the privatization of NEC Networks & System Integration Corporation and the transfer of SME and fire/disaster prevention businesses.

Neither split will involve the allotment of shares or consideration, nor will they change the stated capital of the involved parties. The splits aim to strengthen NEC Group’s business foundation in DX and social infrastructure within Japan, leveraging NEC Networks & System Integration Corporation's multi-vendor SI and nationwide capabilities. The financial impact on NEC’s performance is expected to be negligible.