Announcement of Establishment of a Subsidiary

SHIFT Inc. (“SHIFT,” headquartered in Minato-ku, Tokyo, Japan; Masaru Tange, CEO and Representative Director) announced today that it has established SHIFT Growth Capital Inc. (“SHIFT Growth Capital,” headquartered in Minato-ku, Tokyo; Taichi Hattori, Representative Director) as a wholly-owned subsidiary, whose main business is the planning and execution of M&A and the management and operation of investees under M&A strategy that SHIFT has planned, with the aim of implementing M&A more flexibly and expanding the scope of M&A and establishing a group management system to execute steady PMI, based on the type of M&A that has been cultivated in the future toward further business growth.

1.Reason for the establishment
SHIFT has shifted its corporate branding from “SHIFT as a software testing company” to “SHIFT as a sellable services producer.” As this new catchphrase indicates, SHIFT has committed to bringing success to the businesses of its customers. As a way for the commitments, SHIFT promotes M&A activities and capital and business alliances with the aim to enhance one-stop services to one-stop services that enable SHIFT Group to provide customers with a broad range of services in an integrated manner, acquiring outstanding human resources, and thereby accelerating business growth.

SHIFT has decided to establish SHIFT Growth Capital in March to expand and enhance M&A and PMI strategy. In order to achieve net sales of \500 billion, SHIFT will promote businesses with clearer criteria in M&A markets and faster decision makings. This new investment subsidiary has three purposes: a) to further accelerate M&A activities: b) to operate PMI: and c) to strengthen the Group’s management structure.

The new M&A strategy including this investment subsidiary will be explained when it is officially founded.

SHIFT Group’s business activities and further acceleration of M&A through the establishment of this investment subsidiary will contribute to the IT industry by helping to diminish the shortage of IT personnel, to resolve the multiple subcontracting structure and to increase the salaries of engineers in Japan, and improve Japanese labor productivity by making a commitment to “producing customers’ software services and products that sell.” By expanding the business activities of the SHIFT Group through M&A and capital and business alliances, SHIFT intends to expand the provision of value to the IT industry and, ultimately, the Japanese society.

Please refer to the link below for further information.
20220125_SHIFT Growth Capital_EN