KMD was bought by NEC for $1.2bn.
KMD, the largest Danish IT company, announced that it was acquired by NEC, one of Japan’s largest companies and a leading worldwide technology group.
The deal values the company at approximately DKK 8bn ($1.23bn) and was made with actual owners, American private equity firm Advent International and Danish pension company Sampesion, which sold their stake in KMD Holding ApS, the holding company of KMD A/S (KMD).
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.
KMD (formerly Kommunedata), based in Copenhagen and led by CEO Eva Berneke, and was started as a developer of IT solutions for Danish municipalities, government and private clients. Kommunedata was established in 1972 by a merger of municipal IT centres. Until 2009 it was owned by the municipalities' national association (Kommunernes Landsforening - KL), who sold the company to EQT Partners and Arbejdsmarkedets Tillægspension.
Today, the company mainly provides software and IT services in Denmark through business models that generate profit continuously on a recurring basis, such as software as a service (SaaS) offerings. The company, whose customer base includes central and local governments, has a wide variety of software for supporting the digitization of Denmark, and a track record of executing strategic M&A which has broadened its service offering in a number of key verticals.