Announcement of the Acquisition of KINSHA Co., Ltd

SHIFT Inc. (“SHIFT,” headquartered in Minato-ku, Tokyo, Japan; Masaru Tange, CEO and Representative Director) is announcing that its wholly-owned subsidiary, SHIFT Growth Capital Inc. (“SGC,” headquartered in Minato-ku, Tokyo, Japan; Taichi Hattori, President and Representative Director) decided to acquire a 100% equity interest in KINSHA Co., Ltd (“KINSHA,” headquartered in Kyoto-shi, Kyoto, Japan; Shunji Sakata, Representative Director and Chairman; Shinichi Sakata, Representative Director and President), a provider of game debugging, staffing and translation services.

1. Reasons for the acquisition
Since launching its software testing business in 2009, SHIFT has provided software quality assurance services across a broad range of industries, from enterprise to entertainment. Notably, SHIFT has provided services in the entertainment sector from the very start, which has been a significant driver to the growth and success of its software testing business.

The domestic gaming industry has recently surpassed ¥2 trillion*1 and continues to grow, with further increases in demand anticipated. To expand its market share in this domestic gaming industry, SHIFT has been providing consulting services for upstream processes since around 2021, leveraging its extensive knowledge across a broad range of services. Additionally, in 2021, DICO Co., Ltd. (“DICO,” headquartered in Shibuya-ku, Tokyo; Emilio Gallego; Representative Director), a company specializing in localization and game-development, joined the SHIFT Group. Through these efforts, the SHIFT Group has worked to strengthen its services in the entertainment sector.

To expand its share in the entertainment sector, SHIFT has been cultivating its client base in the online gaming industry by leveraging its expertise in the quantification, visualization, and streamlining of software testing through “systemization,” a core area of SHIFT’s specialization. To further expand its market share in the consumer gaming industry, SHIFT is recruiting talent with extensive experience in the field, while accumulating specialized knowledge unique to the industry.

KINSHA, which will join the SHIFT Group through this transaction, primarily serves major companies in the entertainment sector and operates a diverse range of services, from game testing with a focus on consumer games, to localization and 3D/2D production. Specifically in the game testing business, KINSHA boasts a team of employees with nearly 20 years of experience and extensive expertise.

By joining the SHIFT Group, KINSHA aims to strengthen and expand its services, further growth its customer base, enhance recruiting efforts, and solidify its management foundation. SHIFT seeks to acquire new customers, primarily in the consumer gaming sector, and ultimately expand its services internationally by leveraging the consumer gaming market as a strategic foothold.

*1 KADOKAWA ASCII Research Laboratories, Inc. “Famitsu Game White Paper 2024”

Please refer to the link below for further information.
20240927_KINSHA_EN