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NEC accepts investment in a special purpose company that holds all shares in Avaloq

Source: NEC

NEC Corporation (NEC; TSE: 6701) today announced it has decided to accept investment from the Fund Corporation for the Overseas Development of Japan's ICT and Postal Services (JICT) in a special purpose company that was established in December 2020 for the acquisition of Avaloq Group AG (Avaloq), a leading Swiss financial software company.

The special purpose company is an NEC subsidiary that holds all Avaloq shares.

Specifically, a portion of the special purpose company shares held by NEC will be transferred to JICT for approximately CHF 300 million (USD 338 million). JICT is scheduled to invest after February this year, resulting in an investment ratio of approximately 14% in the special purpose company.

By accepting this investment from JICT, NEC will be able to reduce acquisition costs and allocate funds to further growth investment while maintaining Avaloq's management rights.

As the digitalization of the economy and society accelerates, it is expected that cooperation between government and finance will accelerate, and the areas of digital government and digital finance will play an important role in the formation of a safe, secure, fair and efficient society.

Including Avaloq, Northgate Public Services in the UK and KMD in Denmark are three NEC Group companies that are central to the development of business in both digital government and digital finance, and are driving NEC's initiatives to become the top global software provider in these fields.

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