Notice Regarding Absorption-type Merger (Simplified Merger) of a Subsidiary (DICO Co., Ltd.)

SHIFT Inc. (“SHIFT,” headquartered in Minato-ku, Tokyo; Masaru Tange, CEO and Representative Director) announced that its Board of Directors, at a meeting held today, resolved to conduct an absorption-type merger (hereinafter “the Reorganization”) of DICO Co., Ltd. (“DICO,” headquartered in Shibuya-ku, Tokyo; Kyohei Shimizu, CEO and Representative Director), a group company (consolidated subsidiary, 100% owned).
As the Reorganization constitutes an absorption-type merger involving a consolidated subsidiary of SHIFT, certain disclosure items and details have been omitted from this notice.

1. Reason for the Reorganization
DICO joined the SHIFT Group in July 2021 as a company developing localization and game development businesses. Since joining, it has expanded its business in collaboration with SHIFT’s entertainment domain.

Recently, demand for LQA (Linguistic Quality Assurance), the final process of checking quality in DICO’s localization business, has been expanding. With the spread of generative AI, demand for “AIPE (AI Post Edit),” where humans proofread AI translations in LQA, is also increasing. SHIFT has confirmed changes in client requirements to maintain quality while reducing translation time and costs.

Recognizing these changes in demand in the localization business, SHIFT decided on the Reorganization to streamline management resources and strengthen the structure for providing LQA, keeping in mind future market fluctuations driven by AI. LQA requires project management linked with game development while organizing a massive amount of information. SHIFT, having welcomed DICO through the Reorganization, will work to strengthen cross-selling proposals for the localization business, including LQA, leveraging its expertise in project management cultivated in software quality assurance. Furthermore, SHIFT will integrate the localization business resources of KINSHA Co., Ltd., which was similarly reorganized into SHIFT in December 2025, to streamline the assignment structure. In addition, SHIFT will work to improve management efficiency by integrating back-office functions.

For further details, please see here.