Notice Regarding the Acquisition of Shares in a Newly Established Company (Subsidiary) of ESCCO Japan Co., Ltd.
Notice Regarding the Acquisition of Shares in a Newly Established Company (Subsidiary) of ESCCO Japan 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; Hidetaka Kojima, Representative Director) decided to acquire all shares of a newly established company (hereinafter referred to as “Newly Established Company”) that will be established through a company split (incorporation-type split) by ESCCO Japan Co., Ltd. (“ESCCO Japan,” headquartered in Shinjuku-ku, Tokyo, Japan; Xianku Li, Chief Executive Officer) for the purpose of acquiring ESCCO Japan’s system development business for the life insurance and non-life insurance industries in Japan (hereinafter referred to as “the Business”) thereby making the Newly Established Company a subsidiary of SGC.
1. Reason for the acquisition
Since its founding in 2009, SHIFT has developed its business as a professional in software quality assurance across a wide range of industries, from the enterprise sector to the entertainment sector, starting with its software testing business. Currently, SHIFT continues to grow as the SHIFT Group, encompassing 42 group companies (including consolidated subsidiaries and affiliates) and providing end-to-end system development and related services.
The Business of ESCCO Japan provides consulting services for the implementation of low-code development platforms tailored to the insurance industry, as well as system architecture design and construction. In addition, the Business offers a broad range of services, including business analysis, system maintenance, and the development of related systems. Leveraging extensive experience and specialized expertise in insurance operations, the Business has established itself as a highly reliable partner by building systems that can flexibly and rapidly respond to changes in customers’ business environments. It has built stable and long-standing business relationships primarily with major domestic insurance companies, thereby achieving sustainable growth. At the same time, the Business faces challenges in sales activities targeting new customers and in talent recruitment.
Through this acquisition, the SHIFT Group will collaborate with the Newly Established Company by sharing know-how related to human resources and HR initiatives and by jointly engaging in sales activities, with the aim of further expanding its business in the insurance sector. In particular, by strengthening collaboration with HOPES Corporation, which focuses on providing solutions for insurance companies and has been expanding its revenue in this domain within the SHIFT Group, the Group aims not only to enhance the breadth of value it can offer but also to expand its customer base and increase the scale of its projects.
By welcoming the Newly Established Company into the SHIFT Group through SGC, the Group will further accelerate its growth while enhancing the value of its service offerings, and will continue striving to realize the creation of “services that drive sales” for its customers.