According to an announcement by Philips and NEC, the two companies have signed a binding MoU to establish a joint venture for enterprise communications. NEC will take a majority share in Philips' Business Communications unit, and through this transaction a new company will be formed with the name NEC Philips Unified Solutions. NEC will have a 60% stake in the joint venture, while Philips will take up the remaining 40%. The joint venture will take over all Philips' Business Communications unit's operations in Europe, the Middle-East, and Africa, which also involves 900 employees.