NEC enters into exclusive talks

Tokyo-headquartered NEC Corporation has entered into exclusive talks to buy a controlling stake in Hexaware from the founders of the company, Atul Nishar and his family, and private equity investors General Atlantic and ChrysCapital, two people directly briefed on the matter said on condition of anonymity. NEC Corporation has been conducting due diligence on Hexaware and is expected to make a final binding offer for the firm by mid-June, one of the people quoted above said. A spokesperson for Hexaware said in response to queries from ET NOW that they do not comment on speculation. A spokesperson for NEC also said they would not be able to comment on speculation. Senior NEC officials have recently visited some of Hexaware's sites and have been meeting with the company's management team, according to the person quoted above. Hexaware's founders Atul Nishar and his family own a 28% stake in the firm. General Atlantic owns a 15% stake in Hexaware while ChrysCapital owns 10% of the company. NEC which had sales of over $36 billion at the end of March 31st 2012 has been looking at growing its IT services business aggressively and has identified it as one of the key growth drivers for the company alongwith its carrier networks business, social infrastructure business and energy storage solutions business. The company has been witnessing growing demand for its IT services from sectors such as manufacturing, telecom and financial services in Japan and has also planned expansion into overseas markets. NEC recently announced a plan to establish an NEC Mobile Network Excellence Center (NMEC) for the offshore development of mobile communication systems in Chennai in April this year. Hexaware was founded in 1990 and employs over 8000 people at present. The company has annual revenues in excess of $250 million and draws a majority of its revenues from clients in North America and Europe. The company also has an office in Japan.