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NEC Software Solutions Ordered to Sell Some Parts of Its Business by UK Regulator – MarketWatch

By Ian Walker


The U.K. Competition and Markets Authority said Thursday that NEC Software Solutions UK Ltd. must sell parts of its business in order to satisfy the regulators concerns over its acquisition of Capita PLC’s SSS Public Safety Ltd. and Secure Solutions USA LLC.

The regulator, which expressed its concerns over the deal in September, said that an in-depth investigation found that publicly funded emergency services could end up paying more for essential software.

In order to restore competition, the CMA is requiring NEC to sell off both the integrated communication and control services and duties software businesses to an approved buyer.

“We have found that this merger risks our blue-ight services paying over the odds for their software or having access to fewer or inferior alternatives,” Chair of the independent CMA inquiry group Kip Meek said.

“By selling off the parts of the business where the merger caused problems, the companies will resolve our concerns and help restore competition in these important markets.”

Capita, a London-listed professional services provider, said in October 2021 that it was selling the businesses to NEC Software for 62 million pounds ($83.9 million).


Write to Ian Walker at ian.walker@wsj.com