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NEC buys CSG division, becomes fully-fledged ICT provider

NEC buys CSG division, becomes fully-fledged ICT provider

Communications integrator aims to be a $1 billion business with the purchase of CSG’s Technology Solutions division.

Communications integrator, NEC, is on course to become a major ICT service provider after snapping up CSG’s Technology Solutions division.

The opportunity to buy Technology Solutions came about in January.

NEC decided 12 months ago to transform its Australian business with the goal of becoming a top five ICT company within five years and the purchase is part of that strategy.

To reach its goal, the company will have to become a $1 billion business and NEC considers this an achievable outcome.

The integrator is expecting a rapid growth phase in the ICT industry with the rollout of the National Broadband Network (NBN), a surge in mobility trends as well as cost pressures on government and business sectors.

“To meet these needs, companies like ours need broad-based skills and capabilities to really deliver the business outcomes,” NEC Australia managing director, Alan Hyde, told ARN. “We have had a very communications-centric business in Australia and this acquisition gives us significant ICT capabilities.”

Growing economic woes worldwide do not faze NEC as the company recognises ICT innovation can provide efficiency and cost-savings to business and government, according to Hyde.

CSG’s Technology Solutions is set to become a new division in NEC and will be rebranded.

NEC intends to retain all 800 exisiting staff in the division.

“This plan is based on growth and transformation, not about cost reduction,” Hyde said. “Together with our existing 1500 employees and a business with $400 million in revenue, we are clearly now a top tier ICT provider in Australia.”

Follow the author of this article on Twitter: @spandaslui

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