NEC announced the acquisition of KMD Holding ApS, the holding company of KMD A/S (KMD), the largest Danish IT company.
NEC is acquiring KMD for approximately 8 billion Danish Kroner (DKK) from Advent International, one of the world's largest and most experienced private equity investors. The acquisition is expected to be completed by the end of February 2019.
This acquisition is expected to accelerate NEC's global safety business, which it has positioned as a growth engine in its three-year medium-term management plan, the "Mid-term Management Plan 2020," and is promoting a shift towards service businesses that utilize horizontally deployable platforms.
NEC is also expanding its business domain through the utilization of its advanced biometrics and artificial intelligence (AI) technologies to develop areas that include public safety, digital government and smart transportation. These initiatives are being implemented under the "NEC Safer Cities" program, which supports the realization of safe, secure, efficient and equal cities.
KMD mainly provides software and IT services in Denmark through business models that generate profit continuously on a recurring basis, such as software as a service (SaaS) offerings.
NEC sees the acquisition as a good match with its strategic ambitions within the public sector. KMD has solid experience and a strong portfolio of software in this market segment.