NEC signs deal to acquire Convergys’ Global Information Management (IM) Business for US$449 million

Telecom Lead India: NEC Corporation has signed a definitive agreement to acquire
Convergys Corporation’s Information Management (IM) business, which delivers Business
Support Systems (BSS) solutions to communications service providers around the

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.

Following this acquisition Convergys’ IM business and
organization will be integrated into NetCracker Technology Corporation, a
subsidiary of NEC. The acquisition will enable NetCraker to add key BSS
software and services to its market-leading Telecom Operations and Management
Solutions (TOMS) suite. NetCracker will be responsible for all business
operations of the combined entity. 

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. It will provide a 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 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.”

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, according to company

NEC’s communications carrier business includes 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.

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

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