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Date: 30 May 2012
Category: Company Announcements
TOKYO and MELBOURNE, May 30, 2012 – NEC Corporation (NEC; TSE: 6701) today announced an agreement to acquire Australian ICT company CSG Limited’s Technology Solutions business, one of Australia’s largest and leading ICT services and consulting firms. The transaction includes the complete Technology Solutions business that provides end-to-end IT solutions and services, including managed services, enterprise services and strategic consulting.
This acquisition is consistent with NEC Corporation’s global growth strategy to further develop its ICT services capabilities. It also strongly supports NEC Australia’s vision of becoming a leading Australian ICT services company and significantly broadens its capability set in high growth services such as ERP, CRM, Business Intelligence, managed services and cloud based business solutions. This investment will position NEC Australia Pty Ltd as one of the top tier ICT companies in Australia, by revenue (over A$400m) and employees (approximately 1,550).
“The new organization will have the capabilities and scale to successfully compete for some of Australia’s largest ICT contracts,” said Dr. Nobuhiro Endo, President of NEC Corporation. “It also provides a comprehensive solution and services platform to strategically extend Asia Pacific business development opportunities for communications and IT solutions and services growth.”
This expanded capability will allow NEC Australia to offer an extensive value proposition providing both innovative solutions to customers and addressing their top business priorities as they seek to transform their businesses in a rapidly changing technology environment.
Following the successful completion of approvals for the sale, the Technology Solutions business, comprising the two subsidiaries, CSG Services Pty Limited and CSG Solutions Pty Limited, will operate as an independent business unit of NEC Australia with senior executives reporting directly to Alan Hyde, Managing Director, NEC Australia. “I am delighted to welcome the highly skilled Technology Solutions team to NEC Australia. This is an exciting opportunity for all staff and stakeholders, as the acquisition supports our growth and expansion objectives. We have acquired a profitable division of a well-regarded national IT services organization with a proven business model, management expertise and strong sales pipeline. The two businesses are complementary; we are adding significant IT consulting, application development, business process solution management and desktop and infrastructure management expertise to NEC Australia and the Technology Services business’ capabilities will be bolstered with access to NEC’s international experience, advanced technology products, corporate size and global brand,” he said.
Hyde added that the two companies’ customer bases were highly compatible. “The CSG Technology Solutions group has a strong government, large and medium sized enterprise customer base. Our ability to offer customers an end-to-end solution, encompassing business applications, IT and communications infrastructure and support as a managed service leveraging cloud technology will be unique,” he said.
The acquisition, which is subject to several standard sales conditions and final Foreign Investment Review Board approvals, is expected to be finalized in 30-60 days.
Mitsubishi UFJ Morgan Stanley Securities acted as exclusive financial adviser, and Corrs Chambers Westgarth acted as legal adviser to NEC/NEC Australia.
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