NEC’s Acquisition of CSG Systems Clears Major Shareholder Hurdle

The path for NEC Corporation's planned takeover of CSG Systems International is becoming clearer following a decisive shareholder vote. Investors have overwhelmingly approved the merger agreement, shifting the focus from the deal's viability to its final closing timeline and the remaining procedural steps.

With shareholder consent secured, the completion of the transaction now hinges on obtaining the necessary regulatory clearances and satisfying other customary closing conditions. CSG has confirmed its expectation that the deal will be finalized within the 2026 calendar year, provided these outstanding requirements are met or waived.

The company's shares closed at 66.50 euros on Friday, marking a slight decline of 0.75%. While daily price movements will continue, market observers suggest that progress on the pending approvals will be the primary driver for the stock in the coming months, determining if the acquisition concludes as scheduled in 2026.

Shareholders Deliver Resounding Approval

During a special meeting held on Friday, January 30, the proposals required to finalize the merger received strong support. According to filed documents, a total of 23,519,178 shares were voted in favor of adopting the merger agreement. This stood in contrast to just 5,392 votes against and 63,762 abstentions.

Should investors sell immediately? Or is it worth buying CSG?

Voter turnout was significant, with 23,588,332 shares represented out of 28,520,509 shares entitled to vote. In a separate, non-binding advisory vote, shareholders also approved compensation arrangements for certain executives related to the transaction, with approximately 16.1 million votes cast in favor.

Institutional Interest Highlighted by Vanguard Filing

Concurrent with the shareholder vote, notable institutional activity was disclosed. The Vanguard Group reported a 11.22% stake in CSG Systems International in a Schedule 13G/A filing dated January 30. The filing is based on holdings as of December 31, 2025.

The submission specifies ownership of 3,202,544 shares. Vanguard reports shared voting power over 226,592 shares and shared dispositive power over the entire position. This disclosure underscores the stock's continued strong institutional ownership profile ahead of its anticipated delisting following the deal's closure.