TOKYO, May 28 (Pulse News Wire) – SHINKO Inc. (7120.T) announced today that its board of directors decided to acquire all shares of TAC Corp.
The acquisition aims to enhance growth and profitability as part of the company's mid-term strategy for fiscal years 2024 through 2026. SHINKO, which has built a stable revenue base since its founding through maintenance services, faces challenges in improving profit margins due to intense price competition in the IT market. To address this, the company believes diversifying into new high-margin businesses is essential. TAC, known for its subscription-based CAD sales and consulting services, offers a promising opportunity for expansion. With SHINKO’s strong track record in talent recruitment—hiring more than 70 new graduates annually—the company expects synergies in personnel development and cross-selling initiatives. Key financial data shows TAC reported a lower net profit of -¥34.2 million for the fiscal year ending December 2025, with earnings per share at -¥170,985.
However, this was primarily due to adjustments in prior-year profits and severance payments, affecting the figures temporarily. Notably, TAC completed a business spin-off on April 16, 2026, but the recent three-year performance includes results from the spun-off operations. Financial highlights for TAC show revenues of ¥645.1 million, ¥772.0 million, and ¥1.034 billion for fiscal years 2023, 2024, and 2025 respectively. Operating income was ¥31.8 million, ¥56.8 million, and ¥3.2 million; ordinary income stood at ¥36.7 million, ¥58.8 million, and ¥9.2 million; while net losses were recorded at ¥22.6 million, ¥38.9 million, and -¥34.2 million for the respective periods. The transaction is expected to close on July 1, 2026, subject to regulatory approvals. SHINKO anticipates minimal impact on consolidated financial performance initially but will disclose any significant changes promptly.
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