News
Notice Regarding Acquisition of Shares of Sanden System Engineering Corporation by EXEO Digital Solutions, Inc., a Group Company
September 20,2022
EXEO Group, Inc. (headquarters: Shibuya-ku, Tokyo; President & Representative Director: Tetsuya Funabashi; hereinafter the "Group") announces that EXEO Digital Solutions, Inc. (headquarters: Minato-ku, Tokyo; President & Representative Director: Yuji Sato; hereinafter "EDS"), its subsidiary, has concluded an agreement today with Sanden System Engineering Corporation (headquarters: Isesaki-shi, Gunma Prefecture; Representative Director: Hitoshi Roppongi; hereinafter "SSE") to proceed with the acquisition of all of the shares of SSE (hereinafter: the "Share Acquisition") with a view toward increasing its local government business in the system solutions business.
1. Purposes of the acquisition of shares
The Group believes that solving social issues is a universal mission as it laid out in its 2030 Vision and Medium-Term Management Plan (FY2021-FY2025), which were both released in May last year. With this in mind, the Group will strive to connect and combine a variety of engineering areas through innovation and work relentlessly to create value for sustainable growth. By doing so, it aims to be a corporate group that is socially essential globally and in Japan.
SSE, a system development company based in Gunma Prefecture, has an excellent track record in the development, installation and maintenance of core systems for local governments nationwide. By combining the expertise and sales channels developed by SSE over many years in its local government business and the solutions for local governments promoted by EDS and the Group's system solution companies, the Group will aid local governments in the facilitation of the standardization of their business systems and the introduction of the government cloud platform, while also working on projects with greater added value in collaboration with SSE in other solution business areas to accelerate the expansion of its solution business.
2. Details of the acquisition of shares
EDS will acquire all of the shares issued by SSE in exchange for cash.
3. Outline of the new subsidiary
Name：SANDEN SYSTEM ENGINEERING CORPORATION
Address：3450-8, Miyako-machi, Isesaki-shi, Gunma Prefecture
Representative：Hitoshi Roppongi, Representative Director
Business：Development, operation and maintenance of systems and sales and construction of packaging systems
Share capital：30 million yen
Date of establishment：August 1, 1987
4. Future outlook
As a result of the Share Acquisition, SSE will become a consolidated subsidiary of the Group. The impact of the Share Acquisition on the Group's consolidated financial results for the current fiscal year will be minor.
Additionally, SSE's name will be changed within six months of the completion of the Share Acquisition.
【Contact for inquiries】
Public Relations Team, Corporate Communication Unit, EXEO Group, Inc.
TEL. +81-3-5778-1075 E-mail：contact@en2.exeo.co.jp