NEC Corp. said Thursday it has agreed to acquire Danish information technology company KMD for about ¥136 billion.
The Japanese company expects the deal to reinforce its IT business in Europe. The acquisition is expected to be completed by the end of February next year, NEC said.
KMD has a strong customer base among central and local governments and has a wide variety of software for supporting the digitization of Denmark, NEC said. The Danish company had annual sales equivalent to ¥95.8 billion last year.
The acquisition will “bring NEC closer to achieving its goal of lifting annual sales in its safety business overseas to ¥200 billion in the year ending in March 2021,” President and Chief Executive Officer Takashi Niino said at a news conference in Tokyo.
The safety business, which the Japanese company positions as a growth engine, uses biometrics and other advanced digital technologies to provide services aimed at realizing a safe and secure society.
NEC plans to combine its biometrics and artificial intelligence technologies with KMD’s IT services for governments, after the acquisition.
In Europe, the Japanese company acquired Northgate Public Services Ltd., a British IT firm that provides business systems and other products to police, in January this year.