NEC transfers overseas network equipment resale business and other IT businesses

Tokyo - NEC Corporation (NEC; TSE: 6701) today announced that it has entered into an agreement with a consortium led by Assist Group S.r.l.* with business leaders who have extensive experience across a wide range of industries to transfer its overseas network equipment resale business—which involves building systems for overseas telecommunications operators and enterprises using network equipment from partner companies—as well as its IT services business for governments and local authorities in certain countries, which includes system development for biometric authentication and smart cities. The transfer is expected to be completed during fiscal year 2026 subject to customary closing conditions.

The overseas network equipment resale business operates in regions such as Latin America, the Asia-Pacific, and Europe, and upon the conclusion of this agreement, the entire business will be transferred. In addition, the IT services business for government and local authorities in certain countries will be transferred, including parts of business in Latin America and Europe, where operations are primarily centered on the overseas network equipment resale business.

Until the completion of the transfer, NEC will continue to operate these businesses as usual and will work closely with partner companies to ensure a smooth transition. Furthermore, NEC will continue to supply biometric authentication-related products in the countries where the IT services business for government and local authorities is being transferred, even after the transfer is complete.

Takayuki Morita, President and CEO of NEC Corporation, commented:
“Leveraging our deep technical expertise, NEC has contributed to the growth and problem-solving of customers in various countries through these businesses for many years. Under the new ownership, which places long-term growth, investment, and human resource development at the center of its strategy, I am confident that these businesses will be able to provide even higher-value solutions to customers in the future.”

NEC aims to sustainably enhance corporate value and further strengthen profitability by leveraging strengths, combining its IT services business, which promotes the implementation of AI throughout society, and its social infrastructure business, which promotes the comprehensive implementation of security technologies. This transfer is being carried out as part of a review of NEC’s business portfolio based on this strategy. Going forward, NEC will pursue further growth overseas by focusing on its software and services business, which possesses strong competitive advantages across various industries such as government and local authorities, finance, and telecommunications.