Corporate News

Announcement of Absorption-Type Merger of Realglobe Automated Inc. (Wholly-owned Subsidiary) by SystemI co., ltd. (Wholly-owned Subsidiary)

Announcement of Absorption-Type Merger of
Realglobe Automated Inc. (Wholly-owned Subsidiary)
by SystemI co., ltd. (Wholly-owned Subsidiary)

SHIFT Inc. (“SHIFT,” headquartered in Minato-ku, Tokyo, Japan; Masaru Tange, CEO and Representative Director) announced today that its wholly-owned subsidiary, SystemI co., ltd. (“SystemI,” headquartered in Yokohama-shi, Kanagawa, Japan; Keisuke Kuzukawa, President and Representative Director) decided to merge SHIFT’s wholly-owned subsidiary, Realglobe Automated Inc. (“RGA,” headquartered in Minato-ku, Tokyo, Japan; Takahiro Ohata, President and Representative Director) by absorption (hereinafter “the Merger”).

1. Reason for the acquisition
Since joining in the SHIFT Group in February 2020, RGA has been participating in projects as a member of the SHIFT Group by leveraging its expertise and advanced technological capabilities in DevOps*, which have been its strengths over the years. RGA has greatly contributed to the expansion of services in the infrastructure field, which consequently grew the net sales in the infrastructure field of the SHIFT Group by approximately 2.1 times in the six months from September 2020 to March 2021. More than two years have passed since RGA joined the SHIFT Group, and SHIFT recognized RGA’s solid growth through PMI and its strong synergy effect within the group.

SystemI, of which vision is “to update system development in Japan and to sophisticate DX (Developer Experience),” is also a member of the SHIFT Group that provides software development and consulting services, with strengths in proposals from upper stream, mainly for large-scale financial projects. Since joining the SHIFT Group, SystemI has been aiming to expand its technological fields and improve its technological capabilities by acquiring projects in more diverse areas, as well as conventional large-scale financial projects, while utilizing the SHIFT’s sales resources.

The merger will bring the following advantages to the SHIFT Group.
a. Through the Merger with RGA, SystemI can strengthen and expand the infrastructure area, the foundation of DX (Digital Transformation), which will greatly expand the variations of proposals to existing/new customers.
b. By participating in projects in the diverse areas that SystemI has, RGA can work further to improve its technological capabilities and expertise and expand its knowledge
c. As SystemI has recognized that there are much more customer need, including those in the infrastructure area, where RGA has been strong at, than the current supply capabilities of SystemI. Therefore, the Merger will lead to the acquisition of significant business opportunities
The SHIFT Group, including SystemI and RGA, will work further to grow through the Merger. As a secondary effect, the SHIFT Group will also promote more efficient use of management resources.

* DevOps is a term that combines “Development” and “Operation.” It refers to the initiative to promote collaboration and even integration of “developer (of software)” and “operator (of internal IT infrastructure),” who conventionally has different skill sets respectively. One of expectations to promote DevOps is to enhance agility of software development.

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