July 2, 2008
NEC Buys Undersea Cable Company
NEC and Sumitomo Electric have jointly acquired Japanese undersea cable company OCC Holdings for an undisclosed sum from Longreach Group.
NEC will hold approximately 75% and Sumitomo Electric will hold approximately 25% of OCC Holdings and its subsidiary OCC Corp, which manufactures submarine cables for telecommunications.
The acquisition is in line with the company's strategy to increase its share of the global undersea cable market which is dominated by Alcatel-Lucent (40%) and Tyco (40%). Last month, it joined Tyco to start construction on the high-bandwidth, trans-Pacific Unity Cable System linking Los Angeles and Chikura, Japan.
Masamichi Imai, executive general manager of broadband networks at NEC, said: "The need for broadband capacity is rapidly expanding on a global scale. This acquisition represents a strategic advancement for NEC to maintain a dynamic leading presence in undersea industries."