Risk of Delays or Shortfalls in Executing Acquisitions, Integrations and Restructurings and Realizing Their Benefits
First written in FY2016. 6 of 20 entries say "Advanced", first in FY2018. Latest entry: FY2026.
The whole theme swung hardest in 2025: 9 of 29 companies on the "Worse" side.
1 other company's latest entry also says "Other".
- FY2026CSG acquisition completedAnnual report
「The acquisition was completed on 14 May 2026, and CSG Systems International, Inc. became a consolidated subsidiary of the company.」
The acquisition agreement with CSG was completed, and CSG became a consolidated subsidiary. Execution challenges remain regarding post-acquisition integration and the realization of synergies. - 2026-05-26AdvancedGeneral Meetings of Shareholders
「A share exchange agreement was entered into on 29 January 2026 between our subsidiary NESICホールディングス㈱ and NECフィールディング㈱. Through the share exchange under that agreement, NECフィールディング㈱ became a subsidiary of NESICホールディングス㈱ effective 1 April 2026.」
The group reorganization centered on NECネッツエスアイ advanced with NECフィールディング becoming a subsidiary of NESICホールディングス through a share exchange. - FY2026-H1CSG acquisition agreement signedAnnual report
「At a meeting of the Board of Directors held on 29 October 2025, the company resolved, through its North American regional holding company NEC Corporation of America, to acquire CSG Systems International, Inc., a software company serving telecom and broadband operators in the United States, and entered into a merger agreement with CSG.」
As a new acquisition and integration transaction, the company entered into an acquisition agreement with CSG. Subject to approval by the shareholders' meeting and competition authorities, completion of the acquisition is scheduled for 2026. - FY2025AdvancedAnnual report
「A share consolidation was conducted with 25 March 2025 as its effective date.」
The acquisition and restructuring transaction to make NEC Networks & System Integration Corporation a wholly owned subsidiary progressed through the effective date of the share consolidation, reducing the voting rights ratio of non-controlling interests to 0%. - FY2025-H1Plan to take subsidiary private through a new tender offerAnnual report
「At a meeting of the Board of Directors held on 29 October 2024, the company resolved to conduct a tender offer under the Financial Instruments and Exchange Act as part of a transaction aimed at acquiring all issued common shares of its consolidated subsidiary NEC Networks & System Integration Corporation (NESIC) and taking NESIC private.」
A new acquisition and restructuring transaction took concrete form: a plan to acquire all shares of consolidated subsidiary NEC Networks & System Integration Corporation and take it private. - FY2023MaterialisedAnnual report
「The group recognised impairment losses on certain goodwill and intangible assets because the profitability initially anticipated was no longer expected to be achieved.」
In connection with monetisation risks following acquisitions and integrations, the company recognised impairment losses of ¥6,857 million, including ¥3,029 million of goodwill. - FY2022AdvancedAnnual report
「In March 2022, NEC OncoImmunity acquired a personalised neoantigen cancer vaccine business to address challenges including speed and cost in vaccine manufacturing, and worked to strengthen the healthcare and life sciences business.」
The scope of acquisitions and business expansion broadened from digital government and digital finance to personalised cancer vaccine businesses. - FY2021-Q3New large-scale acquisition completedAnnual report
「The share purchase was completed on 22 December 2020 under the share purchase agreement.」
On 22 December 2020, the company acquired all shares of the holding company that owns 100% of Avaloq Group, adding a new specific acquisition and integration transaction. - FY2021-Q1Discontinuation of part of the acquired business became an earnings factorAnnual report
「Global business revenue decreased by ¥17.2 billion, or 15.1%, year on year to ¥97.0 billion, despite an increase in marine systems revenue, due to declines in displays and wireless backhaul, as well as the discontinuation of certain businesses at KMD that had been anticipated at the time of the acquisition.」
For KMD, the discontinuation of certain businesses anticipated at the time of the acquisition was identified as a factor behind the decline in global business revenue. - FY2020-Q3Tender offer completed; delisting from consolidated subsidiary status plannedAnnual report
「The tender offer was completed on 24 January 2020, and Nippon Avionics Co.,Ltd. will therefore cease to be our subsidiary as of 31 January 2020. The impact of this share sale on the fiscal year ending March 2020 is expected to be immaterial.」
The tender offer for Nippon Avionics was successful, and the company is scheduled to cease being a subsidiary. The execution status of the acquisition and restructuring took concrete form. - FY2020-Q2AdvancedAnnual report
「In the securities report for the previous consolidated fiscal year, the purchase price allocation was performed and the resulting amounts were disclosed based on provisional fair values; however, the purchase price allocation was completed during the second-quarter consolidated accounting period. As a result, total assets increased by ¥48,309 million and total liabilities increased by ¥13,419 million compared with the original provisional amounts.」
For the KMD acquisition, the purchase price allocation was completed and the provisional accounting treatment for the acquisition was finalised. The risks associated with post-acquisition integration and realisation of synergies remain. - FY2019KMD acquisition completed; integration benefits to comeAnnual report
「The company acquired KMD Holding on 21 February 2019, and KMD Holding and KMD became consolidated subsidiaries.」
The KMD acquisition was completed on 21 February 2019. Risks remain regarding post-acquisition integration, realisation of synergies and monetisation of goodwill. - FY2019-Q3New large-scale acquisition agreement signedAnnual report
「At a meeting of the Board of Directors held on 27 December 2018, the company resolved to acquire all shares of KMD Holding, the holding company of KMD, Denmark's largest IT company, and entered into a share purchase agreement with a fund managed by Advent International, which held shares in the company.」
The company signed an agreement to acquire all shares of KMD's holding company. The planned acquisition date was around the end of February 2019, giving concrete form to new execution and integration risks associated with the acquisition. - FY2019-Q2AdvancedAnnual report
「To accelerate the expansion of its overseas safety business, the company acquired UK IT services company Northgate Public Services from investment fund Cinven on 31 January 2018 and made it a consolidated subsidiary. In the securities report for the previous consolidated fiscal year, the purchase price allocation was performed and the resulting amounts were disclosed based on provisional fair values; however, the purchase price allocation was completed during the second-quarter consolidated accounting period. The impact of this revision was not material.」
For the Northgate acquisition, the purchase price allocation was completed and the provisional accounting treatment for the acquisition was finalised. The impact of the revision was not material. - FY2019-Q1MaterialisedAnnual report
「The transaction was not completed because the buyer failed to fulfil its payment obligation on the scheduled transaction date, 29 June 2018.」
The planned transfer of shares in NEC Energy Devices and Automotive Energy Supply was not completed because the buyer failed to fulfil its payment obligation. The sale process is continuing. - FY2018AdvancedAnnual report
「To accelerate the expansion of its overseas safety business, the company acquired UK IT services company Northgate Public Services from investment fund Cinven and made it a consolidated subsidiary. ... The business combination date was 31 January 2018.」
The acquisition of UK-based Northgate Public Services was completed on 31 January 2018, and the acquisition to expand the overseas safety business moved into the execution phase. - FY2018-Q3Overseas safety acquisition taking concrete formAnnual report
「To accelerate the expansion of the Safety business overseas, we entered into an agreement dated 9 January 2018 to acquire Northgate Public Services, a UK IT services company, from the investment fund Cinven, and planned to make it a consolidated subsidiary from the fourth quarter of the fiscal year. In connection with the acquisition, we planned to invest £475 million, approximately ¥71.3 billion.」
In connection with execution and benefit-realisation risks associated with acquisitions and integrations, the signing of an acquisition agreement for a UK company and plans to make it a consolidated subsidiary took concrete form. - FY2017RestatedAnnual report
「The NEC Group conducts acquisitions, business integrations and business restructurings for purposes including business expansion and strengthening competitiveness, and will continue to pursue appropriate opportunities. However, these activities may adversely affect the NEC Group's ability to achieve its strategic objectives for the following reasons.」
Continues to identify integration delays, additional costs, customer retention and impairment risks associated with acquisitions, integrations and restructurings. - FY2017-Q3Acquisition transactions taking concrete formAnnual report
「On 23 January 2017, the company acquired 10,000,000 common shares of Japan Aviation Electronics Industry,Limited for ¥19,200 million in cash. As a result, the company's voting rights ownership ratio in Japan Aviation Electronics Industry,Limited became 51.17%, and the company became a consolidated subsidiary.」
The acquisition of Japan Aviation Electronics Industry,Limited as a consolidated subsidiary through a tender offer was completed. This filing does not provide specific results regarding post-acquisition integration benefits. - FY2016First statedAnnual report
「The NEC Group conducts acquisitions, business integrations and business restructurings for purposes including business expansion and strengthening competitiveness, and will continue to pursue appropriate opportunities. However, these activities may adversely affect the NEC Group's ability to achieve its strategic objectives for the following reasons.」
Identifies delayed completion of acquisitions and other transactions, integration costs, goodwill impairment and customer retention as risks.