NEC Corp. agreed to acquire CSG Systems International Inc. for $80.70 per share in cash, valuing the U.S. telecom billing software provider at roughly $2.9 billion (¥438.5 billion) including debt. The Denver-based company’s shareholders will receive a 17% premium to Tuesday’s closing price.
The deal marks NEC’s largest software acquisition as the Japanese industrial electronics group seeks to expand beyond its traditional hardware business spanning personal computers to missile radar systems. The transaction will be financed through a combination of cash reserves and external borrowing, according to the companies.
CSG, which provides billing and customer management systems primarily to cable operators, generated $1.2 billion in revenue last year with Comcast and Charter Communications accounting for nearly 40% of sales. The company has been shifting toward cloud-based software-as-a-service offerings to compete in an increasingly crowded market dominated by larger rival Amdocs.
NEC plans to combine CSG with its existing Netcracker subsidiary, which already serves telecom operators with similar business support systems. The pairing could create operational redundancies, though executives emphasized the companies serve complementary customer segments.
Reuters reported in January that NEC was weighing an offer for CSG. The deal requires shareholder approval and regulatory clearance, with completion expected sometime in 2026. CSG has suspended quarterly earnings calls and stopped providing annual guidance following the announcement.
