NEC recently announced the acquisition of a Danish IT company, KMD Holding for approximately 8 billion Danish Kroner (DKK). This acquisition is expected to accelerate NEC’s global safety business, which it has positioned as a growth engine for the company.
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. Specifically, KMD has a strong customer base among central and local governments and has a wide variety of software for supporting the digitization of Denmark. In addition, KMD has a successful track record of executing strategic M&A which has broadened its service offering in a number of key verticals.
“Denmark and the United Kingdom are considered European role models for the implementation of unified digital government measures in order to improve administrative services and reduce costs,” said Takashi Niino, President and CEO, NEC Corporation. “Through this acquisition, NEC will acquire a business model that leverages platforms in the digital government domain as it aims to expand business from northern Europe to the whole of Europe and globally.”
“This is an historic moment for KMD. Becoming a part of NEC will give KMD a new and very robust platform for the strategic development of our business. NEC develops cutting-edge technologies and has a global organization with strong capabilities,” said Eva Berneke, CEO, KMD. “NEC is a world-renowned brand and like us has a strong history when it comes to the development of society through technology. NEC focuses on solutions for society and we are proud that NEC acknowledges our competencies in this respect. We look forward to working together on achieving new common goals and making even better products for our customers.”