November 03, 2025
NEC Snaps up CSG for Greater Digital Transformations in a $2.9 Billion Deal
Making a change from the endless round of AI acquisitions, Japanese giant NEC is in the process of snapping up CSG for its US telecom/broadband service customer experience and payment software business that’s also a feature across a growing range of industries.
The cited goal of the $2.9 acquisition is to utilise NEC’s Netcracker subsidiary and CSG’s customer bases and DX capabilities to boost product competitiveness and expand across more industries. The deal, which was first mooted at the start of the year, should close during 2026, subject to shareholder and regulatory approval.
CSG Meets NEC
SaaS provider CSG helps people and businesses to connect with, use and pay for services. With customer experience, billing and payments solutions, it helps companies build experiences with a difference. Expertise in regions like Australia will help add granular knowledge to NEC’s solutions. NEC notes that the deal will be:
- Highly complementary in the geographical and customer segments. The acquisition is to bolster NEC’s telecom/BB business through best-in-class solutions to telecom/BB clients of both companies
- Unlock substantial synergies through enhanced solution offerings utilising both companies’ technology and digital transformation (DX) capabilities. Plus cross-selling opportunities, and expansion into a broader range of industries.
Building A CSP CX Giant
Communications service providers with their massive customer bases and largely automated systems are a prime business target. And NEC Group’s massive digital footprint provides AI, security, and communications technologies to support customers across a huge range of industries. The deal should also help NEC expand into a range of markets including media, financial services and logistics.
Netcracker’s billing operations, operations and network automation, and intelligent CX are all now agentic-AI powered. While CSG is finely in tune with a CSP CX where “consumers are drowning in digital noise.“ The impact is expected to be immediate EPS growth for NEC, regaining the cost of investment in five years. And with further synergies as they integrate products.
