NEC Corporation announced the acquisition of KMD, the largest IT company in Denmark, for approximately 8 billion Danish Kroner or $1.22 billion from Advent International, one of the top private equity investors.
This acquisition will accelerate NEC’s global safety business, which is one of the growth engines and is part of NEC’s 3-year medium-term management plan.
NEC said it will be expanding its business domain through the utilization of its biometrics and artificial intelligence (AI) technologies to develop areas that include public safety, digital government and smart transportation.
KMD provides software and IT services in Denmark through software as a service (SaaS) offerings. KMD has a strong customer base among central and local governments and supplies software for supporting the digitization of Denmark.
“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,” Takashi Niino, president and CEO, NEC Corporation, said.
NEC will promote the reach of KMD software by utilizing the NEC Group’s sales channels, including the mutual sale of software between KMD and UK-based Northgate Public Services, which NEC acquired in January 2018. Eva Berneke is the CEO of KMD.