NEC Corporation is to acquire software-as-a-service (SaaS) vendor CSG Systems International for ¥438.5 billion ($2.9 billion).
The deal was framed as bolstering NEC's footprint in digital solutions and AI and cloud-driven innovation for various industries. The Japanese giant currently offers SaaS solutions through its NEC Software Solutions subsidiary, as well as its U.S. division Netcracker Technology, which mainly caters to telecoms through operations support systems (OSS) and business support systems (BSS) services.
Headquartered in Englewood, Colorado, CSG provides services for telecom, financial services, healthcare, and more, with a reported revenue of $1,197 last year.
Its SaaS product portfolio will be integrated into the Netcracker suite, with NEC hoping to deliver “a more competitive offering [for] global communication service providers, and to leading brands in high-growth sectors such as media, financial services, healthcare, retail, and logistics.”
NEC will likely be going up against rival solutions in the space, such as Orange’s Orange Business Cloud, and the recently announced T-Systems @Vantage, Deutsche Telekom’s bid to tackle digital transformation efforts by companies moving workloads to the cloud.
It will also face competition from Ericsson, Nokia, and Amdocs, who also offer SaaS-based OSS and BSS solutions.
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