NEC Corporation (NEC) (TOKYO: 6701) has announced an increase in investment in XON Holdings Proprietary Limited (XON), an ICT solutions company based in the Republic of South Africa, making it a subsidiary through NEC Europe Ltd., the company said.
XON, a Systems Integrator throughout Sub-Saharan Africa established in 1996, designs, builds, operates, and manages information and communication technology (ICT) solutions created specifically for customers.
In a bid to expand its business in Africa, NEC made an investment in 2015 in XON that saw NEC take up a 25% stake in XON to unlock synergies between NEC´s African operation and XON. Following the successful synergies and value created through the first transaction, NEC decided to increase its investment in XON in a second transaction that sees NEC increase its stake in the merged XON-NEC Africa business to 59.1%.
NEC expects rapid growth in its Sub-Saharan Africa business, where a huge market exists for its Safer Cities, Energy, Cybersecurity and Telecommunication solutions, amongst others. The combined XON-NEC Africa business provides NEC with the platform to capitalize on these opportunities.
NEC launched its operations in Africa in 1963 and has continued to contribute to the Continent mainly through building telecommunication and broadcasting infrastructure. In 2011, it established NEC Africa (Pty) Ltd. in South Africa, a company focused on growing NEC´s business in the Sub-Saharan region.