NEC acquires largest Danish IT company KMD for $1.22 billion
NEC is acquiring KMD for approximately 8 billion Danish Kroner (DKK) ($1.22 billion) from Advent International, one of the world's largest and most experienced private equity investors. The acquisition is expected to be completed by the end of February 2019.
NEC is a leader in the integration of IT and network technologies that benefit businesses and people around the world.
This acquisition will accelerate NEC's global safety business, which it has positioned 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.
NEC is also expanding its business domain through the utilization of its advanced biometrics and artificial intelligence (AI) technologies to develop areas that include public safety, digital government and smart transportation.
These initiatives are being implemented under the "NEC Safer Cities" program, which supports the realization of safe, secure, efficient and equal cities.
KMD mainly provides software and IT services in Denmark through business models that generate profit continuously on a recurring basis, such as software as a service (SaaS) offerings.
Specifically, KMD has a strong customer base among central and local governments and has a wide variety of software for supporting the digitization of Denmark, which is the top ranking country in the "UN E-Government Survey 2018," announced by the United Nations Department of Economic and Social Affairs. In addition, KMD has a successful track record of executing strategic M&A which has broadened its service offering in a number of key verticals. ■