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Investing.com -- CSG Systems International Inc (NASDAQ:CSGS) stock surged 14.7% in premarket trading Wednesday after Japanese technology giant NEC Corporation (TSE:6701) announced plans to acquire the company in an all-cash deal.
NEC will pay $80.70 per share for CSG, representing a 17.38% premium over CSG’s closing price of $68.75 on October 28. The deal values CSG at approximately $2.9 billion, including debt.
The transaction, which has been unanimously approved by both companies’ boards, is expected to close within the 2026 calendar year, subject to CSG shareholder approval and regulatory clearances.
The acquisition aims to strengthen NEC’s position in digital solutions and accelerate AI and cloud-driven innovation. By combining CSG’s software-as-a-service (SaaS) portfolio with NEC’s existing capabilities, particularly through its subsidiary Netcracker, the merged entity will offer expanded services to global communication service providers and companies in high-growth sectors including media, financial services, healthcare, retail, and logistics.
NEC’s Netcracker subsidiary provides complementary expertise in Business Support Systems (BSS) and Operational Support Systems (OSS), which aligns with CSG’s core strengths.
Goldman Sachs is serving as financial advisor to NEC, while Jefferies is advising CSG on the transaction.
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