Wednesday, March 21, 2012

NEC to Acquire Convergys' BSS for $449 Million

NEC agreed to acquire Convergys' Information Management (IM) business, which supplies Business Support Systems (BSS) to service providers, for US$449 million. The deal covers all of IM's business, including Smart Suite Products, across different verticals including communications, utilities and logistics.

The acquisition will build on NEC's NetCracker division, a supplier of Operations Support Systems (OSS), which NEC acquired in 2008. Following the acquisition, NetCracker will be responsible for all business operations of the combined entity. With this acquisition, NetCracker will add key BSS software and services to its Telecom Operations and Management Solutions (TOMS) suite. The combination of IM's BSS products and NetCracker's TOMS solutions will 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 (Operational Support Systems) solutions through the cloud, as a managed service, or as an in-premise system.

Convergys’ BSS business claims 150 service provider customers (AT&T, vivo, BT, Telkomsel etc) and annual sales of approximately $329 million. NetCracker has a customer base of 70 major service providers.

"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."

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