NEC to buy Convergys' Information Management business for US$449m

Andrew Feinberg Andrew Feinberg

Tokyo, Japan & Waltham, Massachusetts, USA. March 22, 2012 — NEC Corporation today surprised the markets by announcing a definitive agreement to acquire Convergys Corporation’s Information Management (IM) business. The deal is valued at US$449 million and covers all of Convergys IM’s business, including Smart Revenue Solutions, across industry verticals such as communications, utilities, and logistics.

The division has long been recognised as one of the industry’s leading providers of business support systems (BSS) with a history pf transformations to communications service providers (CSPs) around the world.

NEC Corporation says that, the acquisition underscores its “long-standing commitment to offer innovative solutions to the communications industry, enabling service providers to transform their business and successfully compete in a rapidly changing environment. The IM business has enabled service providers around the world to transform their BSS environment and create the foundation for next-generation billing, customer care, and revenue management.”

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

The combination of Convergys IM’s BSS products and NetCracker’s TOMS solutions will, say the new owners, create a compelling end-to-end portfolio that will bring experience and innovation to service providers and other industry verticals — whether they access BSS/OSS solutions through the cloud, as a managed service, or as an on-premise system.

The combined resources and assets of NEC, NetCracker, and IM — including software, services, data centres, and R&D investment — will create a telecom software-focused business that is unprecedented in its scale and size. NetCracker reports that it will give service providers the industry’s most 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 Dr 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.”

“Innovative BSS is the foundation of differentiation and long-term success, as service providers increasingly compete by offering new, unique services and customer experience as opposed to connectivity alone,” said Andrew Feinberg (pictured), president and CEO of NetCracker. “With over 2,400 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. We are excited to have this end-to-end offering as a part of NetCracker’s portfolio and look forward to bringing it to service providers and other industry verticals.”

NEC’s communications carrier business features a line-up of software, services, and network infrastructure that helps service providers rapidly deploy and monetise LTE (Long Term Evolution) infrastructure, Mobile Backhaul, Carrier Cloud Computing, undersea cable systems, and more. These systems enable service providers to create globally competitive and distinctive business models. The continued success of NEC’s carrier business has contributed substantially to NEC’s total net sales of Yen3,115 billion (US$37.5 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 calendar year 2012. UBS Investment Bank acted as exclusive financial advisor to NEC/NetCracker.

RECENT ARTICLES

Building an intelligent IoT with edge fabric

Posted on: August 18, 2022

As the popularity of Edge technology and smart devices increases, we see that there is no bar when it comes to the quantity of data that companies can use to improve their decision-making process. Contrary to this opportunity, many organisations still limit the quality, variety, and extent of data that they can make use of

Read more

MQTT X CLI makes its debut executing MQTT operations has never been easier

Posted on: August 18, 2022

Morgan Hill, CA – EMQ, a global provider of open-source IoT data infrastructure solutions, this week announced the release of MQTT X v1.8.0 to the general public. This release carries significant improvements and strives to enable IoT developers to execute MQTT operations easily and quickly. Additionally, MQTT X v1.8.0 introduces two powerful tools aimed to

Read more
FEATURED IoT STORIES

9 IoT applications that will change everything

Posted on: September 1, 2021

Whether you are a future-minded CEO, tech-driven CEO or IT leader, you’ve come across the term IoT before. It’s often used alongside superlatives regarding how it will revolutionize the way you work, play, and live. But is it just another buzzword, or is it the as-promised technological holy grail? The truth is that Internet of

Read more

Which IoT Platform 2021? IoT Now Enterprise Buyers’ Guide

Posted on: August 30, 2021

There are several different parts in a complete IoT solution, all of which must work together to get the result needed, write IoT Now Enterprise Buyers’ Guide – Which IoT Platform 2021? authors Robin Duke-Woolley, the CEO and Bill Ingle, a senior analyst, at Beecham Research. Figure 1 shows these parts and, although not all

Read more

CAT-M1 vs NB-IoT – examining the real differences

Posted on: June 21, 2021

As industry players look to provide the next generation of IoT connectivity, two different standards have emerged under release 13 of 3GPP – CAT-M1 and NB-IoT.

Read more

IoT and home automation: What does the future hold?

Posted on: June 10, 2020

Once a dream, home automation using iot is slowly but steadily becoming a part of daily lives around the world. In fact, it is believed that the global market for smart home automation will reach $40 billion by 2020.

Read more

5 challenges still facing the Internet of Things

Posted on: June 3, 2020

The Internet of Things (IoT) has quickly become a huge part of how people live, communicate and do business. All around the world, web-enabled devices are turning our world into a more switched-on place to live.

Read more

What is IoT?

Posted on: July 7, 2019

What is IoT Data as a new oil IoT connectivity What is IoT video So what’s IoT? The phrase ‘Internet of Things’ (IoT) is officially everywhere. It constantly shows up in my Google news feed, the weekend tech supplements are waxing lyrical about it and the volume of marketing emails I receive advertising ‘smart, connected

Read more
IoT Newsletter

Join the IoT Now online community for FREE, to receive: Exclusive offers for entry to all the IoT events that matter, round the world

Free access to a huge selection of the latest IoT analyst reports and industry whitepapers

The latest IoT news, as it breaks, to your inbox