KEY POINTS

  • NEC agrees to sell overseas network equipment resale business to consortium led by Italy's Assist Group
  • Deal includes selected government IT services in some Latin American and European countries, including biometric and smart city systems
  • Transaction is expected to close in fiscal 2026, with NEC shifting overseas focus toward software and services
NEC to sell overseas network resale business to Assist Group-led buyer
The deal also covers selected government IT services in Latin America and Europe and is expected to close by March 2027. Photo by Matthew Henry on Unsplash

NEC said on August 5 that it had agreed to sell its overseas network equipment resale business and parts of its government-focused IT services business to a consortium led by Italy-based Assist Group S.r.l. and executives with experience across a range of industries.

The transaction is expected to close during fiscal 2026, subject to customary conditions. For NEC, fiscal 2026 runs through March 2027. Financial terms were not disclosed.

The overseas network equipment resale business provides system-building services for foreign telecommunications carriers and corporate clients using network equipment supplied by partner companies. The business operates in regions including Latin America, Asia-Pacific and Europe, and the entire business will be transferred under the agreement.

The sale also includes part of NEC's IT services business for governments and municipalities in selected countries, including some in Latin America and Europe, where the company has centered operations on the overseas network equipment resale business. That business includes system-building work in areas such as biometric authentication and smart cities.

NEC will continue to operate the businesses as usual until the transfer is completed and work with partner companies to support a smooth handover. In countries where the government IT services business is being sold, NEC will continue supplying its biometric-related products after the transfer.

Chief Executive Takayuki Morita said in the release that the new owner, which places long-term growth, investment and talent development at the center of its strategy, would be able to provide customers with higher-value solutions.

Assist Group, founded in 1987 and headquartered in Italy, provides technology-driven solutions, data intelligence capabilities and strategic consulting services.

NEC said the divestment is part of a broader review of its business portfolio as it seeks to raise profitability and corporate value. Overseas, the company plans to pursue further growth centered on software and services businesses with strong competitiveness in sectors including government, finance and telecommunications.

NEC has been reshaping its business mix in recent years as Japanese technology groups increasingly emphasize software, services and higher-margin digital offerings over lower-margin hardware-related operations.

Originally published on ibtimes.co.jp