Notice of the Absorption-type Merger of a Subsidiary

SHIFT Inc. (“SHIFT,” headquartered in Minato-ku, Tokyo, Japan; Masaru Tange, CEO and Representative Director) is announcing that, at a meeting of the Board of Directors held on March 28th, 2025, it decided to merge SHIFT Enterprise Consulting Inc. (“SEC,” headquartered in Minato-ku, Tokyo; Tetsuya Hasegawa, Representative Director), a group company (a consolidated subsidiary; ownership ratio: 100%) by absorption (hereinafter “the Reorganization”).

1. Reasons for the Reorganization
SEC was established as a company to promote ERP business by encompassing group companies engaged in ERP business with the aim of strengthening ERP business in the SHIFT Group. However, due to recent changes in the circumstances surrounding SEC, such as the revitalization of demand for ERP business in SHIFT itself, we decided to change its policy to develop its business within SHIFT rather than as a specialized company. ERP business both in SHIFT and the SHIFT Group is currently progressing smoothly and performing well. Recently, it recorded net sales of ¥17.3 billion and a net sales growth rate of 29%*. SHIFT has gradually begun to penetrate the brand as a company with ERP operations. In addition, ERP business is positioned as a key strategic asset for the growth of certainty in aiming for “SHIFT2000,” and further rapid growth is required in the future.

SEC will once again become a business in SHIFT, and by directly utilizing SHIFT’s overwhelming recruiting, sales, and technological capabilities, we will work to maximize our business resources. In this way, we will work to further increase our corporate value.

* Net sales is the total cumulative net sales for the last 12 months (from Q2 of FY08/24 to Q1 of FY08/25) including net sales of group companies that provide ERP services. The net sales growth rate is YonY basis.

Please refer to the link below for further information.
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