TOKYO & DENVER -- NEC Corporation (TSE: 6701) (“NEC”) and CSG Systems International, Inc. (NASDAQ: CSGS) (“CSG”) announced they have entered into a definitive agreement under which NEC will acquire CSG for US$80.70 per share in cash, for a total enterprise value of approximately US$2.9 billion, or JPY438.5 billion, including debt. The transaction price represents 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.

The transaction strengthens NEC‘s position as a leader in next-generation digital solutions and accelerates AI and cloud-driven innovation for customers across industries. It will bring together complementary software and services across digital transformation, expanding NEC’s software-as-a-service (SaaS) portfolio, customer footprint, and global reach.

Adding CSG’s proven SaaS product portfolio and strong global customer base to NEC and its subsidiary, Netcracker, delivers meaningful value to customers through a diversified and expanded product portfolio. The transaction will 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 such as media, financial services, healthcare, retail and logistics. The transaction builds on the capabilities of NEC’s subsidiary, Netcracker, which provides a complementary global footprint and deep expertise in BSS (Business Support Systems) and OSS (Operational Support Systems), aligning naturally with CSG’s strengths.

The agreement has been unanimously approved by both companies' Boards. The transaction is expected 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.