NEC to Merge Three U.S. Units

NEC has decided to merge three North American units into a single company to better compete in the telecommunications and networking market, the company said Wednesday.

The three companies, NEC America, NEC Solutions (America) and NEC USA, will be merged on July 1 to form NEC of America. The new company will focus on IT and network systems, and the merger should lead to better service and systems for customers, NEC said.

Because NEC’s business in North America is primarily with telecommunications carriers and enterprise network providers that are demanding more one-stop shopping for systems, it made sense to merge the three companies, said Diane Foley, a spokeswoman for NEC in Tokyo.

"We think it will be better for [customers’] needs," she said.

NEC also hopes to benefit from the merger, with revenue growth of 10 percent. The three companies had combined sales of US$1.3 billion in the financial year ending March 31.

NEC of America will be headquartered in Irving, Texas, which is currently home to NEC America. Its president and chief executive officer will be Tadao Kondo, who currently heads all three companies.

-Martyn Williams, IDG News Service

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