NEC is buying a major European IT company in a bid to increase growth in its global safety business. The company announced that it has established a deal to acquire KMD, which it says is Denmark’s largest IT company.
In a statement announcing the acquisition, NEC explained that it is part of its “Mid-term Management Plan 2020” program, and that it will promote “a shift towards service businesses that utilize horizontally deployable platforms.” The company highlighted KMD’s use of business models that deliver recurring revenues, including Software-as-a-Service solutions; and it noted that KMD has an strong presence in the government sector, suggesting that it will help to drive its “NEC Safer Cities” business, which offers biometrics and AI technologies for government and infrastructure applications.
‘NEC expects its cutting-edge AI technologies, “NEC the WISE” and its biometric technologies, “Bio-IDiom” to be among the areas of great mutual opportunity,’ the company added.
The news arrives just about a year after NEC’s acquisition of Northgate Public Services Limited, a UK-based IT services company. NEC says that KMD’s software will be promoted alongside that of Northgate through its sales channels once the acquisition is complete.
NEC’s announcement offered no indication of the fiscal terms of the acquisition. The company says it expects the deal to be finalized by the end of February.
January 2, 2019 – by Alex Perala