NEC must sell some parts of its business after an in-depth merger investigation found that publicly-funded emergency services could end up paying more for essential software
NEC and SSS (previously part of Capita plc) are amongst a small number of providers of essential software used by blue light emergency services (including police forces, fire and rescue services and ambulance trusts) as well as transport service providers (such as TfL and rail operators).
Following a detailed Phase 2 investigation by the Competition and Markets Authority (CMA), an independent inquiry group found competition concerns relating to 2 specialist software product markets that both companies supply, amongst others. The concerns relate to:
The CMA group found that the loss of either business as an independent competitor would significantly reduce competition in these 2 markets. This could lead to UK emergency services paying more for the same software, deter the innovation of new features and products, or result in less choice for customers.
To restore competition, the CMA is requiring NEC to sell off both the ICCS and Duties software businesses. The terms of sale, including approval of the purchaser of these businesses, will be determined in due course by the CMA.
Kip Meek, Chair of the independent CMA inquiry group, said:
For more information, visit the NEC / Capita merger inquiry page.
Notes to Editors