M&A Overview
Why SHIFT is Passionate about M&A
With software testing and quality assurance solutions as its foothold, there have been a great number of inquiries from clients for projects that support their business expansion, digital transformation (“DX”), and the creation of services that sell well. To build a system that provides one-stop support for these inquiries, SHIFT has been actively executing M&A to strengthen its service portfolio and increase supply capacity and capabilities.
Complement and Reinforce ONE-SHIFT
The image below classifies and maps the roles of each group company, from software development to digital marketing, consulting to management boards, etc. In order to complement and enhance the service areas ONE-SHIFT covers, SHIFT selects target areas and companies to conduct M&A based on the map.
What You Gain by Joining the SHIFT Group
SHIFT works with customers in a wide variety of industries, regardless of size, from enterprise sector (financial services, manufacturing, distribution, logistics, and retailing) to entertainment (Web-based services and games.) The number of clients is approximately 2,000. The sales team led by Michio Sasaki, former President and CEO of KEYENCE Corporation, leads and promotes the cross-selling of ONE-SHIFT solutions.
Also, 80% of SHIFT’s customers are “end user clients.” Although some companies have difficulty raising prices per engineer due to the multi-layer subcontractor structure in the industry, SHIFT Group companies can hike prices per engineer after partnering with SHIFT by eliminating middleman margins.
Human Resources Management
SHIFT recruits more than 1,000 engineers annually and implements a variety of personnel measures, including enhancing engagement, for more than 6,000 employees. SHIFT has developed “Hito Log,” which is its own, unique system that integrates and manages HR data. Hito Log is attracting a high level of attention both within and outside the industry. SHIFT shares these high-profile tools and know-how with group companies and assists them with HR management and hiring.
Management Methods and Resources
SHIFT has built management methods to grow sales by about 1.5 times every year, and SHIFT shares these methods with group companies to accelerate their growth. Also, SHIFT provides group companies with management resources tailored to each management stage from its own CXO talent pool.
Aiming to Become a ¥300 Billion Revenue Organization
The presence of office buildings, commercial facilities, and residential buildings in large-scale complex facilities makes the area a high-value-added area by satisfying the needs to “work” “hang out,” and “live.”
SHIFT applies to this concept to M&A. SHIFT believes that by having various technology companies join the SHIFT Group and enriching its “DX” effort and “services that sell,” the SHIFT Group will be able to become a group of companies with higher added value for customers and the world more than ever before.