DIGITAL Hearts Co., Ltd. entered into an agreement to acquire QC division of Drecom Co.,Ltd. for ?100 million.
November 18, 2021
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DIGITAL Hearts Co., Ltd. entered into an agreement to acquire QC division of Drecom Co.,Ltd. (TSE:3793) for ?100 million on November 19, 2021. DIGITAL Hearts Co., Ltd. shall succeed to the assets, liabilities, contracts, and other rights and obligations of QC Division of Drecom to the extent stipulated in the agreement. There are no plans to change the company name, location, position and name of the representative, business activities, share capital, or fiscal year-end after the absorption-type company split for DIGITAL Hearts Co., Ltd. and Drecom Co.,Ltd. Employees currently in Drecom's QC division can also select new career paths in DIGITAL HEARTS, such as engineers and security analysts in the enterprise area.
The Board of Directors of DIGITAL HEARTS HOLDINGS Co., Ltd. (TSE:3676), parent of DIGITAL Hearts passed a resolution for the transaction on November 19, 2021. DIGITAL HEARTS HOLDINGS Co., Ltd and Drecom plan to implement the transaction without an approval by a resolution of the shareholders meeting. The transaction is expected to be completed on February 1, 2022. DIGITAL Hearts anticipates that the impact on the business results for the year ending March 2022 will be minor.
Drecom Co., Ltd. is a Japan-based company mainly engaged in the provision of contents service including social games and education contents. The Company operates in two business segments. The Contents Service segment is engaged in the planning, development and operation of entertainment contents for smartphones, mainly social games and educational contents. The segment consists of social games business and social learning business. The Advertising Media Service segment focuses on the reward type advertisement service, engages in the planning and development of services related to enterprise marketing activities through the Internet, as well as the planning, development and operation of media contents for smartphones and personal computers.