Japanese technology giant NEC Corporation has announced a definitive agreement to acquire CSG Systems International, a U.S.-based software-as-a-service (SaaS) provider, in a transaction valued at approximately US$2.9 billion (JPY 438.5 billion), including debt. The deal, unveiled on 29 October 2025, underscores NEC’s ambition to expand its global digital services portfolio and strengthen its position in next-generation enterprise solutions.
Under the terms of the agreement, NEC will purchase CSG for US$80.70 per share in cash, representing a 17.4% premium over CSG’s closing price of US$68.75 on October 28, and a 23% premium to its 30-day volume-weighted average price. The boards of both companies have unanimously approved the acquisition, which is expected to close in 2026, pending shareholder and regulatory approvals.
CSG, headquartered in Denver, Colorado, provides billing, payments, and customer engagement platforms to clients across telecommunications, broadband, media, and financial services. Its customer base includes major global operators such as MTN and Comcast, with solutions that support digital transformation and recurring revenue models.
NEC said the acquisition will accelerate its AI- and cloud-driven innovation strategy, combining CSG’s SaaS expertise with NEC’s global reach in telecom, public infrastructure, and enterprise IT. The move also reflects NEC’s broader push to diversify beyond its traditional hardware business into software and services, a sector with higher growth potential and recurring revenue streams.
In a joint statement, executives from both companies emphasized the complementary nature of the deal. NEC highlighted that integrating CSG’s platforms will allow it to deliver end-to-end digital transformation solutions across industries, while CSG noted that NEC’s scale and resources will enable it to expand its offerings into new markets.
Industry analysts view the acquisition as part of a wider trend of consolidation in the SaaS and telecom software space, as global technology firms seek to capture growth in cloud-native, subscription-based services. The deal also positions NEC to compete more aggressively with established players in digital monetization and customer engagement platforms.
If completed, the acquisition will mark one of NEC’s largest overseas deals in recent years, reinforcing its strategy to become a global leader in digital transformation.
NEC Supertower, Japan Picture from Nec
Sources: Yahoo Finance, CSG Investor Relations, Developing Telecoms.
