Announcement of Capital and Business Alliance with Next Generation Technology Group

SHIFT Inc. (“SHIFT,” headquartered in Minato-ku, Tokyo, Japan; Masaru Tange, CEO and Representative Director) announced today that it has formed a capital and business alliance with Next Generation Technology Group (“NGTG,” headquartered in Shibuya-ku, Tokyo, Japan; Eiichi Arai, CEO and Representative Director), entering into a share subscription agreement to purchase non-voting shares through a third party allotment and make a minority investment in NGTG.

1. Reason for the capital and business alliance
In order to continuously increase corporate value, SHIFT has shifted its corporate branding from “SHIFT as a software testing company” to “SHIFT as a sellable services producer,” and has focused on contributing to the growth of customers’ businesses. As one means of doing so, SHIFT has promoted M&A and capital and business alliances with the aim of strengthening one-stop services to provide customers with a full range of services in an integrated manner, acquiring outstanding human resources, and thereby accelerating business growth. In addition, on January 25, 2022, SHIFT decided to establish SHIFT Growth Capital. Including the newly established group company, SHIFT is increasingly working to strengthen our M&A /PMI and group management system.

NGTG, which is similar to SHIFT, welcomes manufacturing SMEs into the Group through M&A, and supports their permanent growth through effective PMI and management system as one group. They have strengths in pursuing synergies and improving operational efficiency within the Group by deploying management systems as a group management platform and sharing the management know-how and best practices of each group company.

With this capital-and-business alliance, SHIFT and NGTG will hold regular information-exchange meetings in which the management of both companies also participates. SHIFT will work to further strengthen SHIFT Group business management methods and sourcing strategies by sharing and studying the M&A /PMI and Group business management know-how of each company.
SHIFT expects that we will be able to make deeper discussions because we have substantial experiences in M&A and also concluded capital-business alliance with each other.

SHIFT and NGTG will continue to grow by strengthening M&A /PMI.

Please refer to the link below for further information.
20220310_NGTG_EN