Japanese tech giant NEC has announced a deal to buy Denmark’s largest technology firm, IT giant KMD Holding. The deal, expected to come through at the end of February next year, is reportedly worth $1.22 billion.
Advent International, a US-based private equity firm will sell KMD Holding to NEC, which says it is looking to tap a growing public-sector demand for digital services.
"Through this acquisition, NEC will acquire a business model that leverages platforms in the digital government domain," NEC President and CEO Takashi Niino told the media.
Last year, KMD reported 5.64 billion kroner in revenue (roughly $650m), despite reporting a 54.5m kroner operating loss ($6.2m). That loss came from restructuring, and the company hopes to return back to track next year.
This is the NEC’s second largest acquisition ever. The company wants to spend $1.81bn in overseas acquisition.
“Denmark and the United Kingdom are considered European role models for the implementation of unified digital government measures in order to improve administrative services and reduce costs,” said Takashi Niino, President and CEO, NEC Corporation.
“Through this acquisition, NEC will acquire a business model that leverages platforms in the digital government domain as it aims to expand business from northern Europe to the whole of Europe and globally.”
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