Tokyo, September 30, 2024 - NEC Corporation (NEC; TSE: 6701) has decided to transfer the POS-related business of its subsidiary NEC Platforms, Ltd. to a special purpose company that is wholly funded by a fund managed by Nippon Mirai Capital Co., Ltd. The transfer is scheduled to take place in August 2025.

NEC Platforms develops and manufactures the TWINPOS series of POS terminals, which it sells through NEC Group companies, and also operates a solutions business that builds and provides systems that utilize POS terminals for the restaurant and service station industries, and it has a high share of the POS terminal market in Japan.

In recent years, as digital transformation accelerates in all industries, POS systems have become an important foundation for improving operational efficiency in stores and supporting data-driven management, and further market expansion is expected in the future due to the development of retail technology.

In this context, as NEC considered various strategic options to maximize the potential of this business while aiming for medium- to long-term growth, NEC decided that it would be best to utilize the know-how of Nippon Mirai Capital, which has a strong track record in formulating and implementing growth strategies, as well as supporting the establishment of structures for the independence of major companies’ subsidiaries, and to strengthen the competitiveness of the POS-related business by operating it beyond the conventional framework as a dedicated company.

NEC and other group companies will continue to carry out POS-related business, and will promote the provision of solutions that utilize digital technology, including POS solutions, to solve customer issues.

In this business transfer, the POS-related business will be transferred to a new company established by NEC Platforms, and all shares of the new company will be transferred to a special purpose company that is wholly funded by a fund managed by Nippon Mirai Capital. The transfer also includes NEC Platforms’ Shiroishi Plant, which is a production base for POS terminals. The production of products other than POS terminals, such as communication equipment, produced at this plant will be transferred to other NEC Platforms plants.

The new company will be independent of the NEC Group, and will be able to develop its business more flexibly and strategically by utilizing Nippon Mirai Capital's extensive management support know-how and broad and diverse human resources network. The new company will aim for further growth by leveraging its high market share and strong customer relationships in the major restaurant and service station industries, as well as its know-how and track record in constructing and operating highly reliable POS systems that it has cultivated over many years.

Going forward, the new company will evolve into a comprehensive solution provider that supports the introduction of retail technology for customers, including resolving social issues such as labor shortages and responding to accelerating inbound demand, as it provides customers with a wider range of innovative value.

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About NEC Corporation
NEC Corporation has established itself as a leader in the integration of IT and network technologies while promoting the brand statement of “Orchestrating a brighter world.” NEC enables businesses and communities to adapt to rapid changes taking place in both society and the market as it provides for the social values of safety, security, fairness and efficiency to promote a more sustainable world where everyone has the chance to reach their full potential. For more information, visit NEC at https://www.nec.com.