NEC and Koninklijke Philips Electronics have reached a basic agreement on the acquisition of a majority stake of Philips' business communications unit by NEC, they said Tuesday.
The agreement extends work the two companies have been doing since 2003 on the use of IP technology in enterprise communications systems.
Under the terms of a memorandum of understanding, NEC will acquire a 60 percent stake in the unit, which employs around 900 people and operates in Europe, the Middle East and Africa, they said in a statement. After the acquisition the business unit will be renamed NEC Philips Unified Solutions and be operated by the two companies as a joint-venture, they said.
The deal is dependant on the two companies signing a final agreement and regulatory approval and is expected to be completed sometime in the second quarter of 2006, they said.