NEC Corporation announced it will acquire CSG Systems International for approximately $2.89 billion in cash, valuing CSG at $80.70 per share. The purchase price represents a 17.38% premium to CSG’s closing price of $68.75 on October 28, 2025, and a 23.07% premium to the 30‑day volume‑weighted average price.
The transaction is expected to close in 2026, subject to shareholder and regulatory approvals. NEC will bring its Netcracker subsidiary into the deal, creating a complementary SaaS and telecom portfolio that includes CSG’s Ascendon and Xponent platforms.
CSG’s Q2 2025 results showed revenue of $271.26 million, up 2.3% year‑over‑year, and earnings per share of $1.16, exceeding estimates. The company’s operating margin was 12.38% and net margin 6.78%. CSG’s revenue is driven by its customer communications, network solutions, billing, revenue management, and payment services segments, with Ascendon and Xponent serving as key cloud‑native SaaS offerings.
Management said the acquisition would allow CSG to accelerate its transition to a fully integrated SaaS platform and provide NEC with a high‑margin, asset‑light business that complements its existing BSS/OSS capabilities. CSG will suspend future quarterly earnings calls and cease annual guidance following the announcement.
The deal positions NEC as a stronger competitor to market leader Amdocs in the telecom BSS market. NEC’s Netcracker has been a significant player in BSS/OSS since its acquisition in 2008, and the addition of CSG’s platforms expands NEC’s SaaS portfolio and customer footprint, particularly in the U.S. telecom and broadband sectors.
Analysts note that the enterprise multiple of 2.4x is moderately above typical BSS acquisition valuations, which usually fall below 2x. NEC will finance the transaction through cash on hand and new borrowings.
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