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Kieran Moynihan
Vice President & CTO Telecoms
IBM Tivoli Division
Japan's NEC surprises market with acquisition of US-based OSS vendor NetCracker
2008-06-27 11:45:33
Tokyo, June 27,
2008 - NEC Corporation (NEC) today
announced a definitive agreement to acquire NetCracker Technology Corp.
(NetCracker), a US-based software and solutions company delivering operations support systems (OSS) transformation to
communications service providers across the globe.
NEC reports that this strategic acquisition
underscores its "long-standing commitment" to offer innovative solutions to the
communications industry, enabling them to transform their business, and rapidly
deploy new infrastructure and services. It does, however, represent a significant change of direction into OSS for the Japanese company, that is better known for its device-side products. The terms of the deal have not yet been publicised.
With this acquisition NEC adds a key element of software and services to its market leading portfolio of mobile and fixed infrastructure products. NetCracker’s products, services and domain expertise will be integral to leveraging complementary assets within both companies.
“NetCracker has distinguished itself with a record of successful OSS transformations and exceptional software solutions and professional services for leading communications service providers,” said Mr Kaoru Yano, president of NEC. “The acquisition of NetCracker strengthens NEC’s offerings and brings even greater value to the global communications industry.”
“NEC and NetCracker share a vision of operations and business support systems being critical to communications service providers, enabling them to build a sustainable competitive advantage,” said Andrew Feinberg, CEO of NetCracker. “NEC’s scale and solution offering will help us extend our core application and services footprint and continue to broaden the solutions we offer to our global customers.”
NEC’s communications carrier business is continually expanding and the company’s superior line-up of telecommunication products includes full line and full layer support; the early adoption of next generation network-related business and globally competitive business models such as Pasolink and submarine cable systems.
NEC will now leverage the acquisition of NetCracker to strengthen its existing business foundations and to provide total solutions for communications businesses whose IP and service diversification needs continue to grow. The company anticipates that OSS will represent a key element to new international growth that is expected to generate approximately 200 billion yen over the next five years.
NetCracker’s know-how in transforming OSS enables communications service providers to deploy new services, as well as build operational excellence and closer customer relationships. As service providers move to an all-IP environment and become more diversified, the company’s expertise becomes an increasingly essential element of their success. Furthermore, the ongoing debut of innovative new services, including IPTV, Triple-Play, 3G and others, provides exciting new opportunities for deploying the next generation of OSS. NetCracker employs approximately 1,000 people worldwide and its customers include France Telecom, MTS, Sprint, TELUS, Telstra, UPC and other leading communications service providers (CSPs) globally.
The new business relationship is
expected to foster innovative solutions that address the needs of CSPs and accelerate NEC’s international software
business. NEC is committed to retaining the relationships and go-to-market
strategies that NetCracker has developed. When the transaction closes
NetCracker will operate as an independent business unit led by its current
management team, and will become the centrepiece of NEC’s communications service
provider software business.
Filed under: Company News OSS IPTV People News