KMD to be acquired by NEC Corporation

Denmark’s leading position within public-sector digitization and KMD’s contribution to this are among the reasons why the Danish IT group is changing owners from the global private equity fund Advent International and the Danish pension fund Sampension to the global Japanese technology group NEC Corporation.

NEC is one of Japan’s largest companies and, among other things, one of the world’s leading technology groups. NEC is known for developing software within biometrics, IT security, artificial intelligence, and data analysis in particular. It also occupies world-leading positions within telecommunications network technologies and other areas.

NEC sees the acquisition of KMD as part of the company’s growth strategy and expansion of its global competencies within software development, especially for the public sector. Part of the basis for acquiring KMD is the fact that Denmark came out no. 1 for e-government development in the UN E-Government Survey 2018.

“Denmark is regarded as a European role model for improving public-sector services and achieving rationalizations through digitization,” says Takashi Niino, President and CEO, NEC Corporation. “Through the acquisition of KMD, NEC will gain access to technology, competencies and products that are absolutely world-class. We see huge potential in rolling out KMD’s platforms and experiences from Scandinavia to the rest of Europe and also globally.”

NEC believes the collaboration has major common potentials. Both parties will benefit from sharing and integrating products, technology and competencies. NEC expects, for example, that KMD will be able to benefit from NEC’s technology and know-how within biometrics and artificial intelligence which are some of the NEC Group’s strategic development areas.

The acquisition should be seen in the context of NEC’s acquisition of British company Northgate Public Services earlier in the year. Northgate Public Services also develops software for the public sector and has products within healthcare, environment, policing and other sectors. Both companies are intended to strengthen NEC’s strategic position within software development.

Strong new platform for developing KMD

KMD sees considerable opportunities in the new ownership.

“This is a historic moment for KMD,” says Eva Berneke, CEO, KMD. “Becoming part of NEC will give KMD a new and very solid platform for the continued strategic development of the business. NEC develops ground-breaking technologies and the company has a global organization with considerable competencies and possibilities. NEC is known all over the world and, like KMD, has a strong tradition of developing society through new technology. NEC considers it an honor to solve problems for society, and we’re proud that NEC recognizes our competencies in the area. We look forward to working together to achieve new shared goals and make our products even better for the benefit of our customers.”

The KMD board is delighted with the way that KMD has developed during the private ownership.

“Since it was sold by the local governments, KMD has undergone massive developments,” says Jens Due Olsen, Chairman of the Board, KMD. “Today, KMD is a powerful, privately owned IT group that can compete on an equal footing with the strongest players in the industry. We’re proud that we’ve been able to transform KMD to the point where it can now be part of a leading global IT group. Today, KMD is a well-run company with a strong product portfolio, possesses internationally leading competencies and still has major development potential.”

As a result of the acquisition, KMD will become an independent subsidiary of the NEC Group. NEC’s acquisition of KMD is expected to be completed within a few months when all the preconditions for the transaction are met, including approval from the competition authorities.

About NEC

NEC Corporation is a leader in the integration of IT and network technologies that benefit businesses and people around the world. The NEC Group globally provides "Solutions for Society" that promote the safety, security, efficiency and fairness of society. Under the company’s corporate message of “Orchestrating a brighter world,” NEC aims to help solve a wide range of challenging issues and to create new social value for the changing world of tomorrow. For more information, visit NEC at www.nec.com.

About KMD

KMD, the largest Danish-based IT company, develops and delivers software and service solutions for local government, central government and the private sector in Denmark as well as chosen segments in Scandinavia. The KMD Group has subsidiaries in Denmark, Norway, Sweden, Finland and Poland. KMD has more than 1,500 Danish and international customers, including more than 800 Danish and international companies. The KMD Group has an annual revenue of around DKK 5.6 billion and around 3,200 employees. Read more at www.kmd.dk.

Contact information

KMD, Christoffer Hellmann, VP Communications, mobile (+45) 25 29 17 84, che@kmd.dk