NEC Acquires CSG Systems International for $2.9 Billion

By Philip Seaworth • Wednesday, October 29 10:47 • Permanent Link

NEC Corporation (TSE: 6701) has announced its acquisition of CSG Systems International, Inc. (NASDAQ: CSGS) for approximately US$2.9 billion, or JPY438.5 billion, including debt. The acquisition was agreed upon at a price of US$80.70 per share in cash, representing a 17.38% premium over CSG's closing price of US$68.75 on October 28, 2025, and a 23.07% premium to the volume-weighted average price (VWAP) of CSG common stock for the 30 days ending October 28, 2025.

This acquisition is set to bolster NEC's position as a leader in next-generation digital solutions and drive AI and cloud-driven innovation across industries. It will expand NEC's software-as-a-service (SaaS) portfolio, customer footprint, and global reach, bringing together complementary software and services across digital transformation.

The transaction is expected to enable NEC to deliver a more competitive offering in next-generation environments, such as global communication service providers, and to leading brands in high-growth sectors including media, financial services, healthcare, retail, and logistics. The acquisition will integrate CSG's proven SaaS product portfolio and strong global customer base with NEC and its subsidiary, Netcracker, delivering meaningful value to customers through a diversified and expanded product portfolio.

The agreement has received unanimous approval from both companies' boards and is set to close within the 2026 calendar year, subject to the satisfaction of customary closing conditions, including approval by CSG shareholders and receipt of required regulatory approvals.

Goldman Sachs is serving as financial advisor, Freshfields as legal advisor, and FGS Global as strategic communications advisor to NEC. Meanwhile, Jefferies is serving as financial advisor, Simpson Thacher & Bartlett LLP as legal advisor, and Joele Frank, Wilkinson Brimmer Katcher as strategic communications advisor to CSG.

NEC Corporation, established in 1899, leverages technology to create social value and promote a more sustainable world. CSG Systems International, Inc. empowers companies to build unforgettable experiences, providing customer experience, billing, and payment solutions.

The acquisition is positioned to enhance NEC's global standing and expand its offerings in the digital transformation landscape, marking a significant development for the company's future growth and value proposition. Following these announcements, the company's shares moved 1.67%, and are now trading at a price of $68.75. Check out the company's full 8-K submission here.

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