NEC’s Acquisition of CSG Systems International Clears Major Shareholder Hurdle

The path for NEC Corporation's planned takeover of CSG Systems International has grown significantly clearer following a decisive shareholder vote. With this critical step now complete, attention shifts to the final regulatory and logistical requirements needed to close the transaction.

During a special meeting held on January 30, shareholders of CSG voted overwhelmingly in favor of the merger agreement with the Japanese technology conglomerate. More than 99% of the votes cast supported the deal, which was initially announced in October 2025.

This approval sets the stage for CSG to become a wholly-owned subsidiary of NEC upon completion. The strategic move is central to NEC's ambition of expanding its Software-as-a-Service (SaaS) portfolio and enhancing its global footprint in digital transformation initiatives, particularly for clients in telecommunications, media, and financial services.

Transaction Details and Strategic Rationale

The definitive agreement stipulates that NEC will pay $80.70 per share in an all-cash transaction. The enterprise value, which includes debt, is approximately $2.9 billion.

NEC's strategy focuses on bolstering its AI and cloud-driven solution offerings. A key component is Netcracker, an NEC subsidiary specializing in Business Support Systems (BSS). The acquisition is designed to integrate CSG's complementary software solutions and extensive global customer base, thereby creating a broader and more competitive combined service platform.

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

Next Steps and Market Considerations

While shareholder consent was a pivotal milestone, the deal's finalization remains subject to regulatory clearances in relevant jurisdictions and other customary closing conditions. The parties anticipate closing the transaction sometime during the 2026 calendar year.

Key focal points for the market now include:

• Regulatory Timeline: Approvals from authorities in key regions are the primary factor determining the closing date.
• Integration Planning: As the closing approaches, specifics regarding the merger of product lines and organizational structures with NEC and Netcracker will gain importance.
• Operational Momentum: On the same day as the shareholder vote, CSG announced a multi-year contract extension with DISH Network, underscoring the ongoing business relevance and client relationships CSG brings to the combined entity.

In recent trading, CSG shares have shown modest movement. The stock closed at €66.50 on Friday, recording a decline of 1.48% over the preceding seven trading days.

In line with the pending acquisition, CSG has suspended its quarterly earnings conference calls and will not provide annual guidance. Consequently, market direction is likely to be influenced by forthcoming updates on regulatory approvals and a more precise timeline for the deal's completion.