NEC and ABeam Consulting Form Strategic Alliance

JCNN News Summaries - Japan Corporate News Network, Nov 19, 2004 by Dale Hug

NEC Corporation and ABeam Consulting have announced an agreement to form a strategic partnership.

Under the agreement, NEC will invest approximately 10 billion yen to acquire existing and newly issued shares in ABeam Consulting resulting in NEC ownership of slightly more than one third of the company's stock. NEC plans to gradually increase its ownership up to 100% by 2010.

This capital alliance matches NEC's goal to expand its global consulting business based on IT/Network integrated solutions, and ABeam Consulting's goal to expand its customer base and engage in rapid expansion of its network of overseas bases by strengthening its financial footing.

NEC will be able to expand its reach in areas such as strategic consulting and ERP package related services by obtaining highly specialized know-how from ABeam Consulting that it has derived from working with more than 500 companies primarily in Asia. The agreement will also enable NEC to expand its business globally centering on Asia.

ABeam Consulting will continue to be independent and provide its services and solutions under the current president Kazumasa Nishioka after the capital alliance.