Acceptance of Investment in a Special Purpose Company with All Shares of Danish KMD Holding
Tokyo, February 28, 2019 - NEC Corporation (NEC; TSE:6701) today announced the completion of the process for acquiring all shares of KMD Holding ApS (KMD Holding), the holding company of KMD A/S (KMD), the largest Danish IT company, making KMD Holding an NEC subsidiary on February 21 this year.
NEC has also decided to accept an equity investment from Fund Corporation for the Overseas Development of Japan's ICT and Postal Services (JICT) for the special purpose company that NEC established in Denmark for the purpose of acquiring KMD Holding.
Specifically, NEC will transfer a portion of its shares in the special-purpose company to JICT for 1.12 billion Danish Kroner. JICT is scheduled to invest in March of this year, and will own approximately 15% of the special purpose company.
With this investment from JICT, NEC will be able to reduce acquisition costs while retaining control of KMD and to allocate funds to further growth investments. In addition, with a shareholder such as JICT, which is a public-private sector fund in which the Japanese government has a majority stake, KMD will be able to build even better relationships with government agencies, which are KMD's major clients.
NEC has positioned global safety business as a growth engine in its three-year medium-term management plan, the "Mid-term Management Plan 2020," and is promoting a shift towards service businesses that utilize horizontally deployable platforms. The acquisition of KMD Holding is part of these efforts. Going forward, NEC will continue to promote the development of its core technologies and solutions, while acquiring new customer bases, delivery resources, core technologies and business models through M&A and partnerships, in order to further expand the social solutions business, centering on the safety business, and to improve profitability.
About NEC Corporation
NEC Corporation is a leader in the integration of IT and network technologies that benefit businesses and people around the world. The NEC Group globally provides "Solutions for Society" that promote the safety, security, efficiency and equality of society. Under the company's corporate message of "Orchestrating a brighter world," NEC aims to help solve a wide range of challenging issues and to create new social value for the changing world of tomorrow. For more information, visit NEC at https://www.nec.com.
NEC is a registered trademark of NEC Corporation. All Rights Reserved. Other product or service marks mentioned herein are the trademarks of their respective owners. © NEC Corporation.