Menu
NEC to acquire NetCracker for $300 million

NEC to acquire NetCracker for $300 million

NEC plans to acquire NetCracker, which provides services to network providers.

NEC will acquire NetCracker, a U.S. software vendor focused on helping communication network providers roll out new services, for about US $300 million, the companies announced Friday.

The acquisition will help Tokyo-based NEC to expand its offerings to providers of Internet, broadband network and large-business services, the companies said. With the acquisition, NEC will add key software and services in the area of operations support systems to its mobile and fixed infrastructure products, NEC officials said.

NetCracker, a 15-year-old company based in Waltham, Massachusetts, helps ISPs (Internet service providers) roll out so-called "triple play" voice, video and Internet services, including VoIP (voice over Internet Protocol) and IP-based television service.

The company also helps providers deliver data services on multiple types of networks, and it offers customer-relationship services to network providers. The latter is an important service to have in the current competitive market, NEC officials said.

"The service fulfillment is an absolutely critical strategic component of data transformational activities," said Andrew Feinberg, CEO of NetCracker. "As we look at what's happening in the market today, with the convergence of networks and IP ... it becomes very clear that the rapid delivery of new services is arguably the most important part of that transformational strategy."

The two companies' products are "complimentary," with NEC having a strong presence in Asia and Latin America and NetCracker focused on North America and Europe, Feinberg said during a press conference.

"Together, we will be able to bring one of the broadest portfolios in the world to enable our customers, communications service providers, to become more competitive," he said.

Among NetCracker's customers are Sprint Nextel and France Telecom.

Through the acquisition, NEC expects to generate US $1.9 billion (200 billion yen) in new sales over the next five years through services for international carriers, the company said. NEC is a diversified technology vendor, with services to network providers a large part of its business.

The companies expect the deal to close within 90 days. NetCracker will operate independently once it is acquired.


Follow Us

Join the newsletter!

Error: Please check your email address.

Featured

Slideshows

Tech industry comes together as Lexel celebrates turning 30

Tech industry comes together as Lexel celebrates turning 30

Leading figures within the technology industry across New Zealand came together to celebrate 30 years of success for Lexel Systems, at a milestone birthday occasion at St Matthews in the City.​

Tech industry comes together as Lexel celebrates turning 30
HP re-imagines education through Auckland event launch

HP re-imagines education through Auckland event launch

HP New Zealand held an inaugural Evolve Education event at Aotea Centre in Auckland, welcoming over 70 principals, teachers and education experts to explore ways of shaping and enhancing learning using technology.

HP re-imagines education through Auckland event launch
Reseller News ICT Industry Awards 2017 - Meet the winners...

Reseller News ICT Industry Awards 2017 - Meet the winners...

Reseller News honoured the industry’s finest on a standout evening for the New Zealand channel, recognising the achievements of established and emerging partners on a memorable night in Auckland.

Reseller News ICT Industry Awards 2017 - Meet the winners...
Show Comments